Investing Mistakes to Avoid While Planning Your Retirement | Aviva India Skip to main content

Investing Mistakes to Avoid While Planning Your Retirement

​A lot of us are left feeling extremely perplexed when it comes to planning for our future goals. Especially when it comes to something like retirement planning, it can be confusing to know where to start. If you too, feel unprepared when it comes to being retirement ready, don’t worry. It isn’t too late.


While you might have come across a retirement planning guide from us and others, here are some of the common MISTAKES that people make when it comes to planning their investment and the steps you can take to improve your retirement readiness.

1. Not having a plan and making saving a priority

It is really important to have a retirement investment plan in place for yourself. While most of us do understand how essential it is, it can be easy to put off. Because other priorities come in the way, retirement planning can be forgotten. Because of other more pressing demands such as saving for college and debt, retirement planning can take a backseat.

How can you change this? The key is to make retirement planning and saving a financial priority

Self-reflect, and think about questions such as;

  • How much can I save each year?

  • Am I taking advantage of every saving opportunity?

  • Can I save more?

2. Not saving enough or not saving now

Compound interest can help you maximise your savings. But this means the longer you save, and the more you put into your saving and investments every month, the better. Time and Compound Interest are best friends. In the case of retirement financial planning, the longer your money accumulates the better; which essentially means that the earlier to start, irrespective of your age, the longer you will have to create a good enough corpus to yield returns .

Cut back on expenses wherever you can and prioritise saving and investments to have enough of a nest egg later. It’s simple- Be sure to invest in the future, and reap higher benefits.


3. Not investing smartly

No matter where you invest, make sure that in your retirement investment plan you trust reliable sources, and not invest blindly without doing proper research. Don’t risk all your savings by putting them into one fund. Diversifying your investments is always a good idea. Investing too conservatively can also be a mistake. If you’re going for long term investment, make some investments in assets with higher returns such as stocks. Stocks can help you combat inflation and also help you grow your purchasing power because they deliver higher returns. Some see stocks as being too risky, but if you have a long time horizon such as decades and are always thinking about where to invest today, you can put some of your assets into stocks.


As you near retirement, advisors recommend moving your money into more conservative investments, so that you can be more certain that your money will be there when you need it.

4. Not taking care of debt

Increasing your debt ahead of retirement can have an adverse affect on your savings. Ensure that you have an emergency fund to avoid any last minute debt or spending from your retirement savings. Experts also advise that you should not stop saving for retirement to pay off your debt. Find a way to balance both.


5. Not planning for health costs

Health insurance might not cover all your retirement health expenses. So ensure that your retirement savings include enough to be able to take care of any unexpected costs that come up. Either plan to buy supplemental insurance to cover this or be prepared to pay the difference out of pocket.



The above is our retirement financial advice to you. No matter where you are in the retirement savings journey, you may have made some mistakes along the way. If you haven’t been saving enough, try to save more starting now and get back on track. Our range of retirement plans are curated to help you though this journey and our experts are a call away to guide you in making the right choices as per your needs.

Related Articles:


AN July 16/22





Talk to an Expert

Leave a Reply

Add new comment

Filtered HTML

  • Web page addresses and email addresses turn into links automatically.
  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.