{"id":2997,"date":"2021-09-29T08:36:39","date_gmt":"2021-09-29T03:06:39","guid":{"rendered":"https:\/\/aayushbhaskar.com\/?p=2997"},"modified":"2021-09-29T18:46:45","modified_gmt":"2021-09-29T13:16:45","slug":"retirement-investment-mistakes-to-avoid","status":"publish","type":"post","link":"https:\/\/aayushbhaskar.com\/retirement-investment-mistakes-to-avoid\/","title":{"rendered":"10 Retirement Investment Mistakes to Avoid","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
Retirement is both a term and an emotion. I remember my father and uncles discussing retirement as a time to take to gardening and tending to grandchildren.<\/span>
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\n<\/span> Times have changed, and sadly, most people never retire in the true sense now. A lot of people even don\u2019t want to retire! They might have a formal upper cap on their age of working with an organization, but increasingly people reject the idea of complete retirement.<\/span><\/p>\n
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One of the reasons we are increasingly discarding the idea of retirement is because we have attached a negative connotation to leisure. We are driven by the idea to be \u201cuseful\u201d and \u201cproductive,\u201d whether our age permits. <\/span><\/p>\n
But irrespective of what your outlook is for retirement – to enjoy the leisure or to take up a new venture, the one thing that everyone will unanimously agree is that we must provide for the years after we turn 60. We must have some saving amount to help us pursue the way we want to live when we have reduced vitality.\u00a0<\/span><\/p>\n
As we all know (but perhaps need to be reminded now and then), the earlier we start investing, the better it is.\u00a0<\/span><\/p>\n
One of the reasons for starting investment early on in life is to save better for the retirement years. People in a government job need to worry less, as they receive a lump sum amount when they retire. They also have an active pension scheme. These lucky folks can worry a little less about reaching retirement age. <\/span>
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\n<\/span> For people working in the private sector or owning a business, there\u2019s usually no lump sum to carry home after retirement, nor a pension scheme. Some private companies do provide, but most companies evade such extra costs of providing a pension.\u00a0<\/span><\/p>\n
This results in a huge chunk of the post 60 age people in India becoming dependant on their children to take care of their needs. This has again given rise to the number of elderly abuse cases in India. Sad as it may be, it is the truth. <\/span>
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\n<\/span> That is why it becomes vital to fending for your older years right from your youth. We bring to you the most common retirement investment mistakes that you can avoid to ensure you have a peaceful life after retirement.\u00a0<\/span><\/p>\n
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If your workplace does not offer a pension scheme, you can opt for the National Pension Scheme or one of the retirement plans offered by banks like HDFC and ICICI. <\/span>
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\n<\/span> Most pension plans have a lock-in period until a certain age to ensure that the sum invested is kept for years after retirement.<\/span><\/p>\n
Investing in a retirement plan or a pension plan is a way forward to secure your post-retirement age.\u00a0 If you are not investing in one, you need to ensure that you invest in other assets that have a lock-in period till retirement age.\u00a0<\/span><\/p>\n
While choosing a pension plan offered by different banks, make sure you understand all the plan’s terms and conditions, and get good returns on the investment.<\/p>\n
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The main idea behind the Employees Provident Fund was to provide for the future years of the employees. However, it has been common to utilize the accumulated funds in the Provident Fund to be utilized in children\u2019s education or weddings.\u00a0<\/span><\/p>\n
So, many Provident Fund accounts are not really providing for the individual holding it, but rather providing for their children and family. Instead of being their financial hope for years after retirement, PF funds have been used to invest in the family’s needs and wants.<\/span><\/p>\n
In many cases, such needs and wants can be deferred for a later period or engaged so that the retirement funds need not be utilized. For example, you can opt for a student loan for your child instead of giving up your provident fund sum.<\/p>\n
It is crucial to keep your Provident Fund sum intact till you retire. Getting a lump sum out of your Provident Fund account will mean that you will have a good amount of money to invest in a business or use for monthly expenses<\/a> after retirement.\u00a0<\/span><\/p>\n <\/p>\n3. Not investing in ETFs<\/strong><\/span><\/h3>\n