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As you approach 40, responsibilities tend to increase. Career, family, children's education, and health – everything demands attention simultaneously. Amidst this hustle and bustle, many people don't find the time for proper financial planning, or they don't take it seriously, amidst their enjoyment of life. If this sounds like you, then you must correct certain mistakes before you turn 40; otherwise, it will directly impact your old age, leaving you with nothing but regret. Here are 5 mistakes you should correct by the age of 40 to ensure a peaceful life after retirement.

1. Not starting investing early enough

The most common mistake is that people keep postponing saving and investing. The 20s and 30s are often spent on enjoyment and expenses. It's only after crossing 40 that people realize they've delayed starting their investments.

The real loss is that you miss out on the benefits of compounding. If you start investing before or around the age of 40, you can build a substantial fund by the age of 60. Options like SIPs, mutual funds, and PPF can be helpful.

2. Ignoring health expenses
Health-related expenses never come with a warning. After 40, problems like high blood pressure, diabetes, and heart issues become common. In such cases, large medical bills can be a heavy burden. Therefore, it's essential to get good health insurance in time. Make sure to include critical illness cover. Along with this, create a separate health fund so that your savings are not affected in case of an emergency.

3. Continuing to carry the burden of debt
The enthusiasm to buy a big house or a luxury car in your younger years often backfires. After 40, the same loans become a source of stress, especially high-interest loans like credit cards and personal loans. The wise thing to do is to take only necessary loans and focus on paying off old debts quickly. Try to become debt-free by the age of 50 so that you can plan for your retirement comfortably.

4. Taking Term Insurance Lightly
Many people think they'll deal with insurance later. But if something unexpected happens and you don't have term insurance, it can put a huge financial burden on your family. The younger you are when you take out term insurance, the lower the premium will be. So, get adequate coverage at the right time so that your family's life doesn't go off track even in your absence.

5. Procrastinating on Retirement Planning
The "we'll see later" attitude is the most dangerous when it comes to retirement. Many people believe that their children will take care of them or that some solution will emerge. The reality is that without planning, retirement years can be quite difficult. Start investing for retirement now, keeping in mind inflation, healthcare costs, and your lifestyle. NPS, EPF, and mutual funds can help with this.

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