A Few Retirement Planning Myths That We Need to Bust Today

A Few Retirement Planning Myths That We Need to Bust Today Being independent and having your own means of livelihood plays an important role in shaping one’s identity. However, we often become so engrossed in our professional lives that we overlook the fact that we may not be employed forever. Yes, retirement is as important and inevitable as being independent and working to earn for a living. And that is why availing the right financial planning services to prepare for your retirement is a crucial aspect of ushering in a secure and self-reliant future. Busting some common myths about retirement planning is essential to ensure that one does not possess faulty perceptions about the process. Here are some such myths busted for you: Myth #1: My Savings Will Be Enough for Sustenance Post Retirement. Yes, having sufficient funds in your savings account and allocating emergency funds can act as an important financial backup during times of need. However, it is important to remember that savings are usually more stagnant and provide much lower interest rates as compared to investing in securities. Retirement-oriented mutual funds investment schemes and a concrete financial plan catering to retirement are essential to grow your funds slowly and steadily, thus helping you to reap the benefits of regular and secure returns. Myth #2: I Have Enough Inheritance to Help Me Survive After Retirement. Relying solely on inheritance is a rather haphazard financial strategy to opt for especially when it comes to retirement planning. While the fortune you earn through inheritance can help you lead a comfortable life, one can never be too sure about whether and when you would inherit this amount. It is possible that this amount may have already been spent by your parents by the time you approach retirement. There is also a possibility of an economic or financial crisis or sudden emergencies when you may need to utilize your inheritance money. In any case, having an exclusive retirement-oriented strategy can help you to fulfil your goals more efficiently and methodically. Myth #3: I Do Not Require an Additional Retirement Strategy as Long as I am Insured. Life and health insurance covers help considerably to compensate for your expenses in case of a death or a medical emergency. However, retirement planning is not all about receiving financial aid during extreme situations. A retired person requires a regular inflow of income to be able to afford the various necessities and have a good purchasing power. It always helps to have your finances well-organized so that you can lead a comfortable life even on a regular basis. Investing in retirement schemes through an SIP investment plan can help you receive regular and secure returns post retirement while not impinging on your present

requirements. Myth #4: There’s Time. Yes, one of the biggest retirement planning myths there can be is that there is still a lot of time for retirement. Many individuals do not begin planning for retirement until they reach their thirties. However, starting your retirement plan in your youth can help you to grow your money for a longer period of time, thus providing you with better returns in the future. Moreover, NPS investment and other such government-initiated schemes help one to invest systematically and regularly for retirement, thus inculcating a long-term perspective in the minds of young investors. Conclusion Retirement is a crucial milestone that provides one with much-needed rest after having worked for a large chunk of one’s life. And being financially secured during this time can further ease the process and contribute to a sense of satisfaction and well-being. We would be happy to help you begin setting up your retirement plan so that you reap the long-term benefits of a happy and secure existence.