Busting Top 5 Retirement Planning Myths That Might Leave You Broke After 60



Retirement planning is one of the most important financial journeys of our lives. Yet, many Indians—especially in cities like Jaipur—still fall prey to myths and misconceptions that derail their plans. These myths don’t just delay your goals; they can cost you years of financial security, peace of mind, and even the lifestyle you dreamed of after retirement.

I am Gunjan Kataria, Founder of Financial Friend and a SEBI-registered Financial Planner and Mutual Funds Advisor in Jaipur. I have spent years guiding individuals and families through the maze of retirement planning. What I’ve found is that most people are not held back by lack of money or opportunities—they are held back by wrong beliefs.

In this blog, we’ll bust 5 retirement planning myths that could be silently destroying your future. We’ll replace myths with facts, share real-life insights, and give you actionable steps so you can take charge of your retirement—starting today.

Myth 1: “I’ll Start Retirement Planning Later. Right Now, I Have Other Priorities.”

The Truth:

Waiting is the biggest mistake most people make. Retirement may feel like a distant dream when you’re in your 20s, 30s, or even early 40s. But the earlier you start, the less you need to save every month. This is because of the power of compounding.

Real-Life Fact:

  • If you start investing ₹10,000/month at age 30, assuming 12% annual returns, by age 60 you will have around ₹3.5 crores.

  • If you delay and start at age 40, investing the same amount, you will only have around ₹1.2 crores.

That’s a ₹2.3 crore difference—just because you waited 10 years!

Action Step:

  • Even if you can only invest a small amount, start today. Increase contributions gradually.

  • Automate your investments via SIP (Systematic Investment Plans) in mutual funds.

Myth 2: “My Children Will Take Care of Me After Retirement.”

The Truth:

This belief was common in previous generations, but times have changed. Rising expenses, changing lifestyles, and the nuclear family system mean you cannot rely solely on your children for financial support.

Real-Life Fact:

A survey by Max Life Insurance in 2023 revealed that 70% of Indians worry about being financially dependent after retirement. Yet, only a fraction take concrete steps to ensure independence.

Depending on children not only creates financial stress but also emotional strain. True independence in retirement means being able to live life on your terms without being a burden.

Action Step:

  • Calculate your retirement corpus (the money you’ll need to live comfortably).

  • Build this corpus through goal-based financial planning, rather than relying on uncertain support.

Myth 3: “My Expenses Will Decrease After Retirement.”

The Truth:

This is one of the most dangerous myths. Many people assume that once they retire, they won’t need as much money. But the reality is often the opposite.

Real-Life Fact:

  • Healthcare costs: Medical inflation in India is rising at 12-15% annually. A single hospitalization can cost ₹3–5 lakhs or more.

  • Lifestyle costs: Today’s retirees want to travel, pursue hobbies, and maintain their lifestyle—not just survive.

  • Inflation: What costs ₹50,000/month today may cost over ₹2 lakhs/month in 25 years.

Action Step:

  • Don’t underestimate future expenses. Use inflation-adjusted calculations.

  • Create a mix of investments—equity for growth, debt for stability, and health insurance for protection.

Myth 4: “Retirement Planning = Just Buying a Pension Plan or Insurance.”

The Truth:

Retirement planning is not a one-time product purchase—it’s a comprehensive strategy. Buying a pension plan or insurance policy is just one small piece of the puzzle.

Real-Life Fact:

Many pension plans in India provide returns of only 5-6%, which is much lower than inflation. Relying solely on them can leave you with a shortfall.

Action Step:

  • Think of retirement planning as wealth creation + wealth preservation.

  • Diversify across mutual funds, equities, bonds, fixed income, and insurance.

  • Review your plan every 2-3 years with a certified financial planner in Jaipur to stay on track.

Myth 5: “I Don’t Earn Enough to Save for Retirement.”

The Truth:

Retirement planning is not about how much you earn—it’s about how much you prioritize. Even small contributions can create big results over time.

Real-Life Fact:

  • A person investing just ₹5,000/month for 30 years at 12% returns will accumulate over ₹1.75 crores.

  • That’s proof that consistent small steps can lead to a secure future.

Action Step:

  • Follow the 50-30-20 budgeting rule: 50% for needs, 30% for wants, 20% for savings/investments.

  • Increase your SIPs every year with income hikes (Step-up SIPs).

How Much Should You Save for Retirement?

This is the question every client asks me as a retirement planner in Jaipur. The answer depends on your lifestyle, goals, and age. But here’s a simple thumb rule:

  • Estimate your monthly expenses today.

  • Assume a 7% annual inflation rate.

  • Multiply by 12 (for yearly expenses).

  • Multiply by the number of years you expect to live post-retirement (life expectancy in India is 70–75 years, but plan for at least 85).

Example: If your current expenses are ₹50,000/month at age 35, you’ll need roughly ₹7–8 crores by the time you retire at 60.

Retirement Planning Tips You Can Apply Right Now

  1. Start Early – Time is your biggest wealth creator.

  2. Invest Smartly – Use equity mutual funds for long-term growth.

  3. Get Adequate Insurance – Health and life cover are non-negotiable.

  4. Avoid Debt Before Retirement – Clear loans before you stop working.

  5. Review Regularly – Life changes, and so should your plan.

Final Thoughts: Your Future Self Will Thank You

Retirement is not just about money—it’s about freedom. Freedom to live with dignity, to travel, to pursue hobbies, and to enjoy time with your loved ones without financial stress.

But that freedom won’t come if you keep believing in these myths. The right time to start retirement planning is now.

Ready to create your personalized retirement strategy? As a certified financial planner in Jaipur, I'm here to help you navigate your unique situation and create a roadmap to your dream retirement.

Contact Financial Friend today:

  • Website: www.financialfriend.in

  • Contact: +91-9460825477

  • Call us to Schedule a free retirement planning consultation

  • Get personalized advice based on your age, income, and goals

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