Common retirement mistakes to avoid!

The little steps that you take or the moves that you make nearing retirement, shows how well you fare in terms of your finances as a retiree. However, there are some common mistakes that you might commit during retirement, which may result in financial blunders. Therefore, it is important to avoid any such mistakes to live a financially sound life even after retirement. Here, we have listed down some of the mistakes that you should avoid committing:

Withdrawing Provident Fund

These days, people are opting to retire prior to their actual retirement year. So, once you retire or leave the job, you are eligible to withdraw your Employee Provident Fund (EPF). Thus, most of the people go ahead and withdraw the accumulate corpus. However, that proves to be a mistake. It is always better to remain invested in the EPF till your actual retirement year. This will not just help you to have a secured corpus but also remain tax free (50 per cent of the corpus). Therefore, remain invested in EPF.

Ignoring healthcare cost

When you retire, the healthcare costs climbs. This is due to your age. As your age progresses, you become more prone to health issues. Even the health insurance becomes costly with dozens of exclusions, which hardly benefits you. Therefore, ignoring healthcare cost in retirement might burn your retirement corpus. Hence, while planning for your retirement, do consider healthcare cost.

Not having retirement plan

Retirement plan often acts as a roadmap for your retirement. Retirement plan helps you to understand how you can expect your cash flows to run during your entire retirement period and according to that, plan for any diversions. Therefore, it is highly recommended to have a retirement plan in place. Not having retirement plan often leads to a roller coaster like experience during retirement.