5 Things to Avoid While Investing For Retirement
There are a lot of factors which decide what sort of coverage will be ideal for you and your dependent family members after your retirement. However, there are certain mistakes that professionals commonly commit while planning their retirement. Below mentioned are five major factors that you must avoid while investing for retirement:
- Delayed approach: A timely decision is the best decision. Ideally, you must start planning for your retirement in the early stages of your career because this will allow you a proper term in years to build up and retain a sufficient coverage for your golden years. Therefore, it is important that you take a timely decision and start saving as soon as you are in a position to do so.
- Not choosing the due sum assured: Sum assured is the amount of funds that you will be entitled to when you retire. You must carefully choose the total sum coverage that you require post retirement in order to avoid being underinsured. For this, it is important to carefully list out your specific requirements and match them with the sum assured as per the retirement plan that you wish to choose.
- Not considering the inflation-factor: This is one of the most common mistakes that people make while planning for the future requirements. While choosing the coverage scope that you wish to avail, it is very important that you take inflation into consideration. Inflation is the general increase in prices over a period of time and reflects the cost of living index that will be in vogue after some decades. For any proper retirement planning, it is very essential that you consider this factor carefully.
- Wrong investment choices: Investment choices may be either equity-based, high-risk options or debt-based, low-risk ones. When you choose an investment option, ensure that it is as per your risk-appetite and the time-period that you have in mind for specific financial goals. Any unplanned decision can severely impact your financial freedom.
- Not having a balanced portfolio: You must equally invest in debt and equity fund options and not take a one-sided approach to investment. This will ensure that there is optimum fund growth and a durable financial reserve is created by the time of your retirement. Therefore, you must aim for a balanced financial portfolio.
HDFC Life offers various pension and retirement plans that seek to secure optimum benefits for your retired life. For details, click on the mentioned link: https://www.hdfclife.com/retirement-and-pension-plans.
Term Plan Articles
Investment Articles
Savings Articles
Life Insurance Articles
Tax Articles
Retirement Articles
ULIP Articles
Subscribe to get the latest articles directly in your inbox
Health Plans Articles
Child Plans Articles
Popular Calculators
Here's all you should know about life insurance.
We help you to make informed insurance decisions for a lifetime.
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
Popular Searches
- Term Insurance Calculator
- Investment Plans
- Investment Calculator
- Investment for Beginners
- Best Short Term Investments
- Best Long Term Investments
- 5 year Investment Plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- income tax calculator
- bmi calculator
- compound interest calculator
- income tax slab
- Income Tax Return
- what is term insurance
- Ulip vs SIP
- tax planning for salaried employees
- HRA Calculator
- Annuity From NPS
- Retirement Calculator
- Pension Calculator
- nps vs ppf
- short term investment plans
- safest investment options
- one time investment plans
- types of investments
- best investment options
- best investment options in India
- Term Insurance for Housewife
- Money Back Policy
- 1 Crore Term Insurance
- life Insurance policy
- NPS Calculator
- Savings Calculator
- life Insurance
- Gratuity Calculator
- Zero Cost Term Insurance
- critical illness insurance
- itc claim
- deductions under 80C
- section 80d
- Whole Life Insurance
- benefits of term insurance
- types of life insurance
- types of term insurance
- Benefits of Life Insurance
- Endowment Policy
- Term Insurance for NRI
- Term Insurance for Women
- Term Insurance for Self Employed
- Benefits of Health Insurance
- Health Insurance for Senior Citizens
- Health Insurance for NRI
- Best Term Insurance Plan for 1 Crore
- personal accident insurance
- Annuity Calculator