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5 Things to Avoid in Retirement Planning in The New Normal

25 September 2020

In the form of a global pandemic, life has enforced a new normal on us. While we are all anxious about our surroundings and the problems persistent now, are we thinking enough about the future? With the current scenario of employment today, are we planning enough for our retirement tomorrow?

Here are a few things you may want to avoid in your retirement planning:

1. Avoid taking up new loans.

In these tough times due to the global pandemic, economies are marred by job losses, pay cuts, and inflation. Many upcoming job-offers were rescinded, and people reported massive reductions in salary due to the switch to work from home mode. Accounting for the uncertainty in employment, it would be wise to stall your vehicle or housing plans at least until the pandemic sees a conclusion. You should avoid debt in your books when the sources of income are slippery.

2. Avoid investing your savings into the equity markets as of now.

The markets have been experiencing constant fluctuations due to the effects of the virus. The industries which were shut due to the lockdowns and supply chain disruptions have either permanently shut down or are struggling to stay afloat. Although, there are some sectors that have witnessed some upward movement. The overall market sentiments seem to be bearish i.e. the stock prices are volatile and it is not advisable to invest your retirement fund in equity right now.

3. Avoid withdrawing your funds from safe securities like PF and EPS considering your years to retirement.

The other unprecedented effects of COVID-19 seen were panic-buying and panic withdrawal. People are panicky seeing the sky-high prices of COVID-19 treatment and are scared to lose a loved one because of that. Therefore, as a safety measure, many have resorted to withdrawing their savings from safe deposits like PF and EPS. This should be avoided unless absolutely necessary because that would result in a reduction of your retirement cushion.

4. Avoid under-utilizing the RBI's EMI relief.

The Reserve Bank of India (RBI) has reduced interest rates on most retail loans as a part of the COVID-19 package. It gives you a chance to reduce your EMI payments for at least this time period. Utilize your funds saved from these revised EMIs, and redirect these savings to your retirement fund.

5. Avoid unverified advice, and seek the assistance of professional investment advisors to ascertain your future planning.

Your financial planning, while working, lays the foundation of your life after retirement. Do not go by hearsay in investing your hard-earned money, and instead, take the help of professionals from the investment field to make prudent decisions for yourself.


Plan for your future with our following Retirement Calculator based on your life goals and financial objectives. Or, you can also approach your financial advisor to aid in it. There is plenty of data out there that can aid you in financial planning save or plan for your retirement. But what’s more “now” are the things that one must avoid in retirement planning to save money.



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