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The Dos and Don’ts of Saving Up for Retirement

By Bhavesh Mehta - Jan 4,2020
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The Dos and Don’ts of Saving Up for Retirement

For those who have just joined the workforce and have their whole life ahead of them, retirement planning may not be the foremost task at the top of their checklist, but the thought lingers. At the same time, there are professionals and entrepreneurs who have been working for quite a long time who are just waking up to the idea of retirement planning. Thus, retirement planning can take place at any junction of your life. One just needs to have balanced and sound goals in sight. Anyone can think of retirement planning at any stage of his/her life and career. Also, anyone can decide his/her age of getting retired as well. For some, it would be standard late 50s while for some, it might be even early 40s. However, it is easier said than done, as retiring from work needs robust planning and sound financial back up to keep the fund in-flow ready for daily expenses, considering inflation.

For most people, an idyllic retirement would look something like – reading books with a coffee in hand on a bright sunny morning with the sea breeze flowing in. However, it is extremely important to plan for such dreams ahead in life so that fulfilling dreams becomes easy post-retirement. Thus, it is important to finalise your retirement goals as early as possible. A plethora of investment options are also available at your disposal, such as investing in a unit-linked investment plan or ULIP to accumulate the required corpus as well as enjoy the benefits of life insurance. You can invest in ULIPs online for retirement planning on Finserv MARKETS.

While planning for your retirement, it is absolutely essential that you keep in mind some vital points and refrain from committing some easily avoidable mistakes. Let us examine some of them.

Following are the common retirement mistakes which an individual might commit:-

1. No Planning

It might be possible that we do not plan at all and leave the planning and outcome to god’s grace. As for post-retirement, you may not even be in a position to think of any planning as the sources of income would be limited and you would be relying highly on pension and savings. So start planning soon to enjoy financial freedom post-retirement. One such popular option is opting for a ULIP to save for your retirement. On Finserv MARKETS, you can buy ULIPs online and start preparing for a stress-free retirement. With a tailor-made retirement ULIP available, you’ll be well on your way to a secure retired lifestyle.

2. Opting for Employer’s retirement schemes

This is provided by many employers; it is important for an individual to take advantage of such retirement schemes as it may help save for the golden period of life post-retirement. However, it is important for you to invest as much as your employer is investing so as to make maximum returns on the investments for retirement.Loan against retirement plan – One should never dilute their savings under the retirement planning. It is advised that your refrain from diluting your savings, kept for financial earning protection post-retirement. Further, it may even attract taxable income, in case of any premature withdrawal. Premature withdrawals also lead to the erosion of the corpus and impact the rate of compounding. Investments in ULIPs compound with time and help you beat inflation in the long run. You can invest in ULIP with a few simple steps on the Finserv MARKETS App. You can avail exclusive offers on the app, besides quick claim processing and transparent pricing.

3. Risk of putting all eggs in one basket

Fixed deposits and Mutual funds are one of the most common options of investments. However, diversifying your portfolio is very important as one may end up losing all their lifetime savings in one go in case of stock and bond defaults. ULIPs provide a reliable option to diversify your retirement corpus. You can invest in ULIPS online, besides mutual funds and fixed deposits, on Finserv MARKETS.

4. Retirement fund requirement 

Refrain from undervaluing your calculations. Inflation, taxes, emergency expenses, etc. need a lot of money to invest.

Retirement is an invaluable portion of your life, a culmination of everything you’ve worked towards. Following these simple tips and tricks will go a long way in shaping the best possible retirement lifestyle for you.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522