Seven alarming signs you will not retire rich

Seven alarming signs you will not retire rich

by 5paisa Research Team Last Updated: Mar 30, 2022 - 11:50 am 178.3k Views
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Keeping a nest egg for your retirement woes is the ultimate responsibility of every individual. After years of running around in circles, one aims to cruise around the world or take care of oneself without being responsible or dependent on anyone. However, certain factors can hinder an individual from retiring richer in their old age.

Listed below are some factors that indicate you may not have a peaceful retirement:

Not enough efforts to increase your income

A survey says that 39% of people feel that they did not taken proper actions or attempts to get a salary hike in their line of work. To gain a salary increase, one must put in a conscious effort and adopt ways that are conducive to a salary increase. One should not treat an appraisal as a stroke of luck or a blessing, but it should rather be treated as your right, albeit one that you work towards. As the cost of living is on a constant roll, one should start looking for ways to increase their income in order to both invest and spend; if not, things could become a struggle in your retirement.

Staying afloat through credit cards and loans

If the individual is a heavy user of credit cards or loans to meet his/her lavish or trivial needs, then it is a massive minus as they would be in the deep end of EMIs. There is still a chance to regulate your income if you have a home loan or any other necessary loan taken for emergencies. However, if the individual relies on credit every time he/she is in a bind, then it is a serious signal that should be checked immediately.

No diligent savings in the past

If the individual has never had the habit of saving in the past and keeps putting it off by saying “I will do it next year”,  then it is a clear signal that he will not get nor retire rich. Such an individual should consult a financial advisor to turnabout their savings habit or drastically reduce the budget to accommodate their investment needs. The individual should begin by setting a goal or a direction to start their savings habit.

Late in savings

The saying – “Better Late Than Never”, applies only in a partial sense to wealth conservation. As one ages. he/she would have to set aside more money to invest in wealth creation. Nevertheless, it is good to have something rather than nothing. However, even that something should have some worth in the future or the savings would not turn out to be as useful as you intended.

A constant struggle at month-ends

If the individual feels sheer desperation for funds at the end of each month, with the habit continuing over a few years, then he/she has to take corrective measures. The first and foremost is attaining a pace where month-ends cease to be a  struggle. He/she then needs to look for ways to save a substantial amount each month; If not, this is a flaming signal that you will remain poor and desperate.

No room for job opportunities

If the individual is in a field where the room for opportunities or growth is insufficient, then the goal of wealth creation will be greatly affected. Also, if the person’s skill set is mediocre, then the signal will always be in emergency mode. The only remedy for this signal is to learn new skills and apply them to increase their contribution towards your income.

The traditional mindset when it comes to investing

If the individual has a habit of investing in conventional methods of investment like bank deposits or PPFs, they will only have a corpus fund that earns returns based on the inflation percentage, but does not award purchasing power. In such cases, the investor would have to deposit more substantial amounts to build up their wealth, which is practically impossible given the rising cost of living expenses and their earning capacity to match their expenses. Thus, one should diversify using mutual funds, debt instruments, and equities, among others, over the long-term to utilize the power of compounding and retire rich.


These are a few important habits an individual has to be wary of. If you feel you have one of these, work on them immediately. This would be the only way you would be able to build a substantial amount of wealth in your oldage and fulfill your desires.

Hope this article has flashed a warning sign in your mind and you start taking corrective actions to building your own pot of gold.

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