Retirement planning serves as one of the most important financial decisions that you will make in your life. Here are some of the biggest retirement planning mistakes that you should avoid making.
#1 Not Starting Early And Staying Invested
The golden rule retirement planning is to start early and invest regularly. In this way you could take advantage of magic of compounding return.
#2 Not Having a Clear Vision on Planning Your Financial Goal
Access your current and future goals thoroughly so that you can estimate the amount of income that you need during your retirement based on your goals.
#3 Disregarding the Effect of Inflation
Inflation will lead to the increase in lifestyle and healthcare costs. Thus dismissing inflation will affect retirement fund that you actually need in the future as the cost will be higher.
#4 Not Knowing How Much to Save For Retirement
Refer to a professional for consultation if you have trouble in calculating and planning your retirement.
#5 Inadequate Takaful/Insurance Protection
Getting an adequate takaful coverage is essential to buffer the financial losses that you may incur in case of illness/disability or any unforeseen circumstances.
#6 Not Updating Your Retirement Plan
Updating your retirement plan from time to time is important as you may have changes in budget, financial commitment or future goal that you want to achieve.
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