Retirement is a significant milestone in life that many people look forward to. However, it can also be a source of stress and uncertainty if you're not prepared for it. That's why it's essential to know the retirement secrets that can help you make the most of your golden years. In this blog post, we will discuss the top five retirement secrets that you aren't supposed to know about.

• Start Saving for Retirement Early: It's never too early to start saving for retirement. The earlier you start saving, the more time your money has to grow. You should aim to save at least 10% to 15% of your income for retirement. If you can save more, that's even better. Regular and consistent contributions, even small, can make a huge difference to your corpus. You can save for retirement through a bunch of investment vehicles like NPS, EPF, GPF, and mutual funds.
• Estimate your corpus accurately: Merely saving isn’t enough. Estimating the corpus accurately is crucial to avoid the risk of outliving your corpus. Your present living expenses, years to retirement, inflation, return on investments, and life expectancy is used to estimate the retirement corpus. A 30-year-old (expected to retire at 60), saving 5K per month, can hope to accumulate at least 1.4 Cr by retirement, assuming an ROI of 11% p.a. Although that is a significant sum, it pales in comparison if we consider her present expenses of 30K per month. The required corpus comes to around 4.63 Cr, considering post-retirement ROI and inflation of 7% and 6%, respectively, and life expectancy of 85. You can calculate your retirement corpus in a similar manner here.
• Don't Underestimate Retirement Expenses: Many people underestimate how much they will need in retirement. While noting your expenses like housing, transportation, food, travel, and leisure activities, you must also factor in unexpected expenses such as home repairs, medical bills, or long-term care. Make sure you have a realistic estimate of your retirement expenses so you can save accordingly.
• Plan for Healthcare Costs: One of the biggest expenses in retirement is healthcare. That's why it's essential to plan for healthcare costs in retirement. Healthcare expenses and the risk of diseases rise with age. Comprehensive health insurance covers, which are a must during retirement, have high premiums. Including them and a contingency buffer can help you be prepared for these expenses.
• Pay Off Your Debt: Another retirement secret is to pay off your debt before retirement and not take on large debts before retirement. Debt can be a significant source of stress in retirement. If you have debt, you may not have enough money to cover your living expenses. That's why it's important to pay off your debt before you retire. Make a plan to pay off your debt as soon as possible so that you can enjoy a debt-free retirement.

Retirement can be a stressful and uncertain time if you're not prepared for it. Knowing these retirement secrets, you can be better prepared for your golden years. Thank you for taking the time to read.

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~Nischay Avichal