Business News Desk, Everyone understands how important retirement planning is. If you want money without doing any work in old age, then it is necessary to take a pension plan for that. Everyone plans for retirement, but most people make some big mistakes during this time. Mistakes made during the job take a toll on your old age. Let us know today about 5 such mistakes, which people often make during retirement planning.
1- Becoming too dependent on EPF
Many youngsters think that they are saving through EPF, so they do not take any separate plan for their old age. Its interest rates are determined by the government and there are some better options available in the market, like NPS. So do not depend too much on EPF and pay attention to other options as well.
2- Not transferring EPF when changing jobs
It is often seen that after changing jobs, people do not transfer their EPF money from the old company to the new company. Due to this, they have to suffer loss of interest. So after changing jobs, definitely transfer the EPF money of the old company to the new company.
3- Start saving late
After getting a job, initially most of the youth think that why save money for retirement now, we will save money later. Let us tell you that the sooner and the more you start investing, the more money you will get on retirement. If you need a fixed amount till retirement, then by starting investing early, you will have to invest less money every month and will get more returns.
4- Considering 60 years as the retirement age
Although officially the retirement age is 60 years, but in today’s time people are working under a lot of pressure. In such a situation, it becomes difficult to keep working till 60 years. So if you start retirement planning immediately after getting a job, then it is not necessary that you retire at the age of 60, you can retire even before that.
5- Ignoring inflation
Often people do not think while saving for retirement what will be the value of the rupee 25-30 years from now. They ignore inflation while planning for retirement and start investing money as per the current rate. In such a situation, the pension they receive on retirement is very low, due to which their expenses are not met properly.
