Real Retirement Mistakes
For a
working man, every day feels like one has so much to do that 24 hours a day
seems too little. Life is made up of hundreds of thousands of moments. Some
that move us, others that change is, and some that provoke us to action. Being
busy takes away so many precious moments for us, so a working man waits for his
retirement to enjoy life to the fullest. We all need to convert the retired
life into golden years. When you don't have to get up in the morning and go to
work 5 days a week. Going live in a place of your choice. Visit all those
places, which you wanted to visit during your work life but couldn't do it for
the want of time. Live life without bothering about outliving your money. This
is the concept of good ideas many of you must be dreaming about. What does it
convertible golden years in everybody's life? If statistics are to be believed,
it's sad that unfortunately, over 95 percent of the people on earth do not
enjoy their golden years. Golden years will remain in use you will remain only
on paper.
Why does it happen, simple mistakes people make during
the retired life off during the preparatory phase of all retired life? If you
do a lot of these mistakes. You shouldn't be enjoying your golden years
Depending Only On
Pensions
Inflation strikes hard on pension and savings. Your
pension might not be sufficient to make the ends meet and your savings also
might not be enough to help you in your hour of need. So you need to have some
other source of income and not just rely on your fixed pension
Life Expectancy Has Increased; You Will Live For Long
Depending only on pensions for your cash needs during
your retired life. Many people make this mistake. What's the problem in a
pension is a great source of cash flow during that entire circle. There was a time
people used to die within 5 to 10 years after the retirement years. Now live up
to 85 to 98 years of age by design. Now imagine you depend only, let's assume
that you are getting 50000 rupees pension every month. If you're getting a
pension from a government, these pensions can be adjusted over time for
inflation but if you bought a pension from pension companies at an insurance
company. This is a fixer pension, this position will not change during your
lifetime.
Fixed pension loses its purchase value over the years
Now you will feel very happy at the beginning, as getting
good. But because this pension doesn't increase with the rise in prices year
after year. You are part using part of this cash flow diminishing and your
living standard school start keep coming down. So depending only on pension for
their cash flow needs he's asking for a reduction of your living standards year
after year. Pension is always less than your salary so we need to manage it
well. Not having enough retirement savings and having a fixed pension means you
will have to find some income-generating employment after you retire.
Depending On
Children for Cash Flow During Retirement
However rude it may sound, the parents who are too
dependent on their children for money have been termed as ‘Financially Toxic
Parents’. Sometimes parents make palatial houses for their children and plan
lavish weddings for them only to dry up their savings. Such parents, later in
life, can be taken up as a burden by their children. So being too dependent on
your children for cash flow cannot be considered a wise option. Depending on
your children for your cash needs. There was a time when also safety expected
children to take care of us. That phase is far behind us now. Life of Our
Children Is Different From Ours. Children hardly leave in a place with you
live, they migrate to different parts of the world. They follow a different
profession. Not many people do this mistake. For their children's education
spent a lot of money. Sending the children to the most expensive colleges,
schools, and universities. Whether it is right or wrong but the priority of
your retirement planning is a much bigger product. Prioritize Retirement
Planning Over Child Education Planning. In the pursuit of sending your children
to good schools and colleges but compromise your preparations for your retired
life that's not such a good idea. Our Children Will Have Genuine Difficulties.
Please Do Not Depend On Your Children For Retirement Cash Needs
Exposing Your
Retirement Money To Risk Of Loss
Investing means putting your money to work for you. If
you make poor choices or if things go beyond your control, you could lose your
retirement money. The parents of one of my friends lost a huge amount of their
retirement money when they heard about a lucrative deal. Their tenant, who knew
about them getting a big amount upon their retirement asked them to lend their
money at a high rate of interest. They believed him only to be duped by him and
losing all the money they had given him. During the retirement years, the
retirees block the money in small financial institutions. Banks like the
cooperative banks or cooperative societies, like small financial institutions
or private money lenders. They come with extra risk. When they collapsed, if
you've put all your money in such an institution, what happens is your retired
life. Blocking all your money in these small institutions or giving it to the
money lenders for the sake of higher returns. Parking in Small Financial
Institutions for Higher Returns is not a good idea. Invest Your Retirement
Corpus in Safe Places
Not Having Health
Insurance
Health insurance is a way of paying for your medical
bills and health care costs. Most people cannot pay for all their health care
out of pocket. Health insurance can make it easier to pay your health care
bills. Not having health insurance during your entire life. Many people do this
mistake. There are not covered for all the health emergencies. They hesitate to
buy during their working years but by the time they retired. The premiums will
go so high up. In many cases, they have one of the other preexisting problems.
On some preexisting diseases, the health insurance companies refused to give
them a health insurance policy.
All need to have health insurance at the beginning of
life. Buy Your Health Insurance Latest By 45 Years. Treat Premiums You Pay As
EMI On Hospital Bills You Pay In Future
Buying Properties
Using Retirement Corpus
Real estate in India is not a profitable investment in
present times. For every property you own, you need to pay taxes so it requires
time and energy. The real estate industry went through many changes in the last
couple of years. Demonetization in 2016 led to a fall in sales of real estate.
In 2017, GST was implemented which led to some destabilization in the supply
and demand of real estate. It can be double trouble for any retired person as
he might not be able to find buyers for their property later on which can be a
huge setback for him. They get a large lump sum amount of money at the end of
service benefit. They use this money to buy some property. If you're purchasing
a property for the sake of rent, remember that residential properties are just
about 2 percent that's below the bank interest rates. Residential Rental Yield
Is Too Low.
There is one other downside to buying the properties. The
properties we lock up a big amount of money. You May Find It Difficult To Sell
the Property plus maintenance Costs for Property
Not knowing Tax
Benefits
The government offers special income tax benefits for
senior citizens to relieve them from stress at this phase of life. Senior
citizens enjoy a higher exemption limit as compared to non-senior taxpayer
citizens. The deduction allowed under 80D for payment of medical insurance
premium is Rs 25000 for non-senior citizens. However, this deduction increases
to Rs 50000 for senior citizens. For senior and super senior citizens, there
are many tax benefits. But not knowing some basics of tax planning make them
lose their money. Like some TDS are deducted, and in India, there’s no income
tax up to 5 lakh rupees but only if you file an Income Tax return.
Staying In
Isolated Places
Stay Closer To Community Where Someone Can Help You.
In old age, staying in isolated places can have
psychological effects too. In old age, one can take advantage of home delivery
of daily needs items. But if they stay in isolated places, they cannot take
advantage of these facilities. Pickup houses which are far away from the main
city. Demand going up to stay in a farmhouse. They make a good stay in remote
villages. There is nobody around them, nobody's there to help if they are in
isolated places. You Need Help Of Younger Generation During Old Age.
People are tired of the cities and for the sake of that
ready spend entire life in isolated places. But it will come with a set of
problems. India is a country where safety is the real issue. Older people are
being attacked.
