Retirement Planning Myths That Keep You From Thinking About Your Future

There are just so many things that cross our mind when we think of Mutual Fund Investments. We all wish to spend the golden period of our life curled up in some destination home with a steady income flowing in every month, enough to help us keep up with the lifestyle we have now and to save enough for medical emergencies and to roam around the world.

The post-retirement life that we imagine for ourselves sure seems too good to be waiting for.

But, if you come back to reality and the present practical world, do you think we are ready to lead a lavish post-retirement lifestyle? Are we saving enough to then spend a glorious life? If you are in your 20s, chances are you haven’t planned your savings out the right way.

And it’s not exactly your fault. We are at a time when retirement seems too far to be a bother at this stage. Plus there are so many things to do right now. Buy a house, a car, have a lavish wedding, etc.

And there are those set assumptions that are keeping us away from making investments in the name of retirement right at this instant.

In this article, we will be looking at the assumptions/myths related to retirement planning, which stops us from thinking in that direction and thus is pushing us towards an uncertain retirement period.

Without wasting another minute, let us look at what those myths are.

Myths that are keeping you from thinking about your retirement 

1. The expenses will automatically go down when we retire

By far one of the most common and most bogus assumptions that we have is that the amount of spending that we do will drastically lower when we retire. Well, it is the opposite that is true. When we retire, we think of doing everything that we couldn’t before because we were too busy. Also, with growing age, the one thing that grows along is the medical expense.

So, if you are thinking that the expenses will lower once you retire, you couldn’t be farther away from the truth.

2. The present-day savings are enough to meet future needs

When we think like this, we forget the factor of year on year escalation in cost. Every year, rather every day, the price of commodities keeps growing. So the vale of Rs.1 that you have today will be nullified 5 years from now. In a situation like this when the economy is growing at an alarming rate, how do you expect your savings today to help you survive the future when the pricing structure would be completely different and a lot greater than now?

3. Your Medical Insurance would be Sufficient

Medical expense, hands down, is the biggest expense that retirees face. And when you reach an age where you need to have the support of finances for emergencies, you cannot rely on a health insurance policy that you have taken today. After all, you don’t know the healthcare cost that would be when you retire or even the new diseases that would come up, which might not be included in your current health plan.

4. You are Too Young to Start Thinking of Retirement

The right time of when you should start making investments in name of retirement planning is now. If you keep waiting for your 30s and 40s to make an investment for retirement, chances are that you will lose on to a huge corpus that you could have collected if you started today.

So, the right thing to do is to start NOW. Just after you finish reading the article.

So here were the myths that keep youngsters from investing in name of retirement. But what should be done?

Where should you start to have a breezy retirement?

The answer to this belongs to two words – Mutual Funds.

When you invest in long-term mutual funds, you do not just avail the benefit of high profit but also through the SIP mutual fund investment mode the pressure is very low and you can start planning your retirement with as low as Rs.500.

Now, you have no reason to delay it further and push your golden period in an age of compromise. Get in touch with our team of retirement investment experts to start planning your retirement wisely.