Are you thinking about and planning your retirement? Waiting until the time of retirement to start planning for it is the worst decision you can make when it comes to your personal financial planning.

Retirement planning must be an integral part of your comprehensive finanicial plan right from the beginning of your planning process if you want to safeguard the quality of your retirement.

The video below discusses 5 common myths related to retirement planning and why they are wrong. These myths are that: 

  1. Life expectancy at retirement will be about 20 years - meaning, you need not save and plan for more than 20 years after you retire. This is problematic because you may retire early due to special circumstances and life expectancies are actually increasing due to advances in healthcare technology.
  2. You will only need 80% of your current income in retirement - we usually forget all the bonuses and other perks not usually captured in our basic incomes on which our retirement benefits will be based.
  3. Healthcare costs will be nominal because of 'national health insurance' schemes - Lots of health related costs are usually not covered by national health schemes or even private health insurance, if you have one and you may need to pay out of pocket for what is not covered.
  4. Retirement savings will last as long as you withdraw only 4% of the value of your retirement account every year.
  5. You will be able to work longer past your retirement if you need more income.

Watch the video for an indepth review of these are myths and why you need to double up on saving and investing for retirement if you want to avoid having a miserable retirement.

Also check out this post which curates 5 very useful articles to get you thinking about various aspects of the retirement planning process and some key areas you need to consider in your planning.

Areas covered by these resources are:

  1. Eight Things To Do Before You Retire
  2. Create a Plan of how you will spend your retirement
  3. Tips to prepare financially before you retire
  4. What to do with your time when you retire
  5. How to decide what to do next when you retire

What ways have you started planning for your retirement? What do you wish you have done differently now that you have retired or about to? Share your thoughts and challenges to help others get this right.