Table of Contents

• Introduction

  • 1️⃣ Delaying the Start

  • 2️⃣ Ignoring Inflation

  • 3️⃣ Over-reliance on Fixed Income

  • 4️⃣ No Healthcare & Contingency Planning

  • 5️⃣ No Withdrawal Strategy

  • Conclusion

Introduction

Retirement is supposed to be the reward after decades of hard work — yet for many, it turns into a struggle. A ₹2 crore corpus, once considered comfortable, now feels barely adequate as inflation, rising healthcare costs, and longer life expectancy stretch every rupee.

Here are five critical retirement planning mistakes that can silently erode your wealth and peace of mind — and how to fix them before it’s too late.

1️⃣ Delaying the Start

The biggest enemy of retirement wealth isn’t volatility — it’s procrastination.
Starting at 25 vs 35 can literally double your corpus, thanks to compounding. Waiting for a “better time” or “higher salary” often costs decades of potential growth.

✅ Start small, but start early. Even a ₹5,000 monthly SIP in a balanced fund can grow to ₹1 crore+ over 30 years.

2️⃣ Ignoring Inflation

Many retirees plan for current expenses, forgetting that ₹1 lakh/month today will need ₹3 lakh/month in 20 years just to maintain the same lifestyle.
Ignoring inflation makes even large portfolios feel inadequate.

✅ Plan with 6–7% inflation built in. Choose growth assets — equity, hybrid, or dynamic allocation funds — to beat inflation sustainably.

3️⃣ Over-reliance on Fixed Income

FDs and savings accounts feel “safe,” but their real returns often fail to keep pace with inflation and taxes. A portfolio that’s too conservative can quietly destroy purchasing power.

✅ Diversify strategically. Maintain a mix — around 40–50% equity, 30–40% debt, and 10–20% liquid or gold — adjusted for age and risk tolerance.

4️⃣ No Healthcare & Contingency Planning

A single medical emergency can wipe out years of savings. Many retirees still underestimate long-term healthcare and eldercare expenses.

✅ Prioritise health insurance and medical corpus. Maintain at least ₹10–15 lakh for medical contingencies, separate from your investment corpus.

5️⃣ No Withdrawal Strategy

Retirement doesn’t end with saving — it begins with using your money wisely. Many retirees either withdraw too much too soon or fear spending at all.

✅ Use the SWP model: Systematic Withdrawal Plans from balanced or hybrid funds can offer monthly income with tax efficiency. Withdraw only 4–5% annually to sustain corpus longevity.

Conclusion

Retirement isn’t about a number — it’s about sustainability.
By avoiding these five traps — delay, inflation blindness, over-conservatism, healthcare neglect, and poor withdrawals — you can turn your retirement from uncertain to unstoppable.

💡 Start now. Your future self will thank you.

CTA: Ready to build a future-proof retirement plan? Speak to a Finogent Advisor today.