Not starting Early: Many believe that they should enjoy the present and don't save for the future. If you start later, you miss out on the magic of compounding. Hence, one must start as early as 25 years of age. The early you start the more you will save.
Not investing enough: In the younger years, we have a tendency to spend excessively, and don't end up investing enough for retirement. Your savings and investments would be your only source of income after retirement. Therefore, you should invest at least 20% of your income in it.
Investing in only one asset class: Investing 100% in either debt instruments or only in equities is another common mistake. Instead of all debt or all equity, where debt is giving 7% returns, you should add equities for blended returns if more than 10% at least.
Early withdrawals from retirement fund: Periodic withdrawals from long-term retirement products like the NPS, EPF, PPF jeopardize your retirement goals and plans. Hence you should avoid touching it as much as possible.
Poor Tax Planning: Many ignore this part while planning for retirement and end up getting less post tax return. Therefore, you should consult a tax expert for your investments and make necessary changes to optimise your returns.
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