Written by : Knowledge Centre Team
2026-01-30
1265 Views
11 minutes read
Share
What’s your dream retirement looks like? Vacation home near a small beach town or hills perhaps? Probably, you’d like to roam around the world with your spouse, when your family responsibilities are over. You may even plan to move to a different city with your old friend circle. Quite possibly, you may not even have thought about it this deeply.
Whatever your post-retirement plans are, or will be, you need to address the challenge that comes before – retirement savings.
Retirement and pension plans are the second most important investments of your life after term life and health insurance plans. If you have been working for a while and are yet to get your first retirement plan, you must understand that opportunity of employment post-retirement age is minimal.
Avoid These Top 5 Mistakes When Choosing a Retirement Plan Online
Meaning, if you make these five mistakes while buying a retirement plan, online or otherwise, you may increase your chances of missing your retirement goal:
1. Not Starting Early
Always remember, the early you start investing, the better growth you can expect on your money. Ideally, you should start planning for retirement with your first job or salary. If you did not the second-best time is now, and given the COVID situation, your best bet will be the online retirement plans.
Time is the major factor deciding the king of funds you can have by the time you retire. For example, if you start investing Rs.5,000 at the age of 20, at an annual return of 12% you will have almost Rs. 6 crores by the time you reach 60.
You can also start investing Rs.10,000 at the age of 35 years. But, by the time you reach 60, you will only have about Rs. 2 crores in your pocket.
Since the rate of return on your investment is not in your control, the only two things you can really have in your hand are:
- The amount of money you invest
- The time you stay invested for
Since the amount also is dependent on your income, time is truly the only factor you can choose somewhat independently. Another way of looking at it is, ‘the earliest penny enjoys the best growth.’ So, be early with your online or offline retirement plan.
2. Not Assessing your Budget Correctly
Another big challenge of retirement planning and investing is to estimate the amount of money you will need every month after you retire. The continuous career growth results in lifestyle upgrade and income growth. Hence, there is an obvious escalation in expenses.
However, post-retirement life will be somewhat different from your present lifestyle, especially if you are in your 30s. Post-retirement most of your expenses will revolve around the following heads:
- Kitchen & Utility
- Commutation
- Healthcare
- Grandchildren/Gifts
Lifestyle expenses will also be there, but they are largely a minor part of your total expenses as you would have already built your household. Thus, you need to put a figure to these heads for your post-retirement expenses. Also, these monthly expenses will determine the size of your retirement corpus.
Another important thing to consider is a medical emergency. As you age your risk of landing in a hospital due to a health emergency or accident increases. However, your chances of having a health cover also decline. Hence, you must consider a medical emergency pool as part of your retirement goal.
Learn how life insurance is a key to happiness post-retirement.
3. Underestimating Future Living Costs
Another mistake you would like to avoid while saving for your retirement is shortcutting the numbers for each expense head for post-retirement life. Wisdom says if you expect to spend 100, you should prepare for at least 110, as a little buffer is always better than no buffer at all.
For example, you surely need not pay for kids' education and their upbringing, but you will have to pay utility bills, medical bills, and the responsibility of being grandparents.
Another aspect of retirement is relocation. Many pensioners relocate to rural areas or a more peaceful setting, and nothing wrong if you want to move too. For example, you may retire from a city but plan to settle in a rural locality, away from the hustle and bustle of the crowd. Just, don’t make the mistake of missing out on major costs, such as:
- Relocation expenses
- House purchase/renovation cost
- Other costs you incur while settling at a new place
4. Not Considering Inflation
One of the most difficult factors to consider in any financial plan is inflation. In the case of retirement planning this is due to two big reasons:
- The goal is too far away, i.e., 20 to 30 years at least
- Inflation keeps changing
For example, the present inflation rate in India is about 4% p.a. However, over 30 years this may average out to be higher or lower than 4%. Once again, we should rely on the more conservative estimate for our goal. Thus, assuming a slightly higher inflation rate wouldn’t harm your retirement savings.
Also, in any case, you will find it easier to tone down your retirement investments later than to notch up.
5. Wrong Choice of Investments for Different Needs
Since retirement is a long-term goal the effect of these two erosions could be large on your savings unless you choose the correct investment options. Equity provides the best long-term growth option and can level or even best the erosion in a long run.
So, initially, a large part of your total investment should be in equity. In the later years, when you are close to retirement, you can systematically pull this money out and put it in debt. The best thing to do is to find investment plans that will make the switch automatically.
Such discipline in investment is necessary if you wish to achieve bigger financial goals. Fortunately, you have the option of plans like P4G, from Canara HSBC Life Insurance. This plan allows three portfolio management strategies for investment growth and one for the safety of corpus near maturity.
Retirement plans in India are a provision to earn a regular income post-retirement. You can buy a life insurance retirement plan while keeping the above giving tips to avoid mistakes while buying a retirement plan online.
Secure Your Retirement with Guaranteed Income Plans
Enter OTP
An OTP has been sent to your mobile number
Didn’t receive OTP?
Application Status
Name
Date of Birth
Plan Name
Status
Unclaimed Amount of the Policyholder as on
Name of the policy holder
Policy No.
Address of the Policyholder as per records
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
Recent Blogs
What Are the Best Investment Options for Indian Retirees?
30 July '26
897 Views
8 minute read
Explore safe and income-focused investment options for retirees, including SCSS, PMVVY, annuities, mutual funds and deposits, with guidance on risk, returns and taxation.
Read More
Retirement Plan
How to Avoid Running Out of Money After Retirement?
30 July '26
905 Views
7 minute read
Learn how to avoid running out of money during retirement by planning expenses, managing savings wisely, preparing for medical costs and ensuring a steady income for life.
Read More
Retirement Plan
Best Insurance Plans to Consider After Retirement in India
30 July '26
893 Views
7 minute read
Understand insurance Plans after retirement. Compare plans that help manage healthcare costs, protect savings, and support financial stability.
Read More
Retirement Plan
5 Reasons to Use ULIPs for Building a Retirement Corpus
30 July '26
8508 Views
11 minute read
Learn five strong reasons why ULIPs are suitable for building a retirement corpus, offering long-term growth, flexibility, disciplined investing and life cover.
Read More
Retirement Plan
When Should You Buy an Annuity Plan in India?
30 July '26
1050 Views
9 minute read
Learn the ideal age to buy an annuity plan, factors that influence timing such as retirement goals, income needs, interest rates, and how early purchase can impact payouts.
Read More
Retirement Plan
What is a Pension Payment Order (PPO) Number in Healthcare?
30 July '26
902 Views
4 minute read
Learn what a PPO number is and its importance for pensioners. Learn how it helps track and manage your pension payments efficiently.
Read More
Retirement Plan
How to Check Old Age Pension Status Online: State-Wise Guide
29 July '26
1056 Views
7 minute read
Step-by-step guide to checking your old age pension status online across all Indian states. Find application status, helpline numbers, and eligibility criteria.
Read More
Retirement Plan
Commuted Pension: Is It Taxable? Meaning, Rules & Calculation
29 July '26
4217 Views
10 minute read
Understand what commuted pension is, how it is calculated, whether it is taxable, and the rules for government and private sector employees in India.
Read More
Retirement Plan
Will Your Retirement Corpus Be Enough? How to Check?
28 July '26
1932 Views
8 minute read
Calculate whether your retirement corpus can support your future lifestyle. Review expenses, inflation, savings, and income sources to estimate retirement readiness.
Read More
Retirement Plan
Retirement - Top Selling Plans
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
Fixed Returns, Zero Risks & Worries
iSelect Guaranteed Future Plus
- 4 Plan options
- Life cover + Guaranteed benefits
- Accidental death benefit
- Premium protection cover
Retire Grand with Flexi Benefits
Smart Guaranteed Pension
- Guaranteed Lifelong Income
- Limited premium payment term
- Multiple annuity options
- Option to defer the annuity payments
Save, Dream, Plan. Live Peacefully
iSelect Guaranteed Future
- 4 Plan options
- Option to choose premium payment term
- Get Tax benefits
- Premium protection cover
Popular Searches
- Retirement Calculator
- Best Retirement Plan
- Senior Citizen Card
- Saral Pension Plan
- NPS Withdrawal
- Pension4Life Plan
- Retirement Planning
- 5 Retirement Tips
- National Pension Scheme
- NPS Pension Calculator
- Types of Pension Plan
- Guaranteed Pension Plan
- Is Pension Taxable
- How to Check Old Age Pension Status
- Benefits of Pension Plan
- How GST Applies to Pension Plan?
- Tax Planning for Retirement
- Types of Retirement Plans
- Guaranteed Pension Plans
- Retirement Income Plans