Bangalore: Deciding to make a plan for retirement is a great first step. In order to enjoy your retirement to the full, you need to make sure that you plan effectively, so as to realize the retirement income you need. But there are no guarantees that your saving and investment strategy will lead to a secure retirement provided you avoid these mistakes to enjoy a contented retirement. Don't postpone your retirement savings Don't live the notion that you are too young to plan your retirement. It is never late to start saving and plan your retirement. If you defer from this thought you are only complicating your retired life and you may need to meet a lot of disappointments. The early you start saving the better it is. Never postpone your savings and investment plans because time will not wait for you to start saving to become a millionaire and have a comfortable retired life. If you start saving and investing when your young, you have enough of time to reach the goal you have set for yourself. When you decide on saving in the middle age, you have a different set of priorities and you may not be able to fund your retirement saving plan. Retirement income need to be tax efficient Don't miss on the opportunities to save on taxes and other benefits. Choose wisely the kind of investment you want. Suppose of you are choosing fixed deposit as an investment vehicle for accumulating your retirement corpus, then, you need to pay taxes as and when the fixed deposits matures irrespective of that you withdraw interest or reinvest under a cumulative option. But you need to pay tax only when you withdraw from the mutual funds. Don't neglect medical aid During old age the visits to hospitals for check up keep increasing. This is what drains off a huge sum from your retirement corpus. You might not be provided with medical aid after retirement by your employer. So take a mediclaim policy that will be benefiting in future. Cashing out Don't cash out the employer retirement plan when you leave the company. This is a big mistake many people commit. This becomes fully taxable and with an additional early withdrawal penalty. For some it is like cutting the account value in half! When you leave an employer, you should consider rolling the money over into your new employer's plan. This eliminates any current taxes or penalties that would otherwise apply. Avoid comparison Many people think they will be okay in retirement because they are saving 10 percent of their salary for retirement and that's what everybody else is doing. But, depending on how much you spend, 10 percent of your salary may not be enough to maintain your current lifestyle. So don't compare your planning with others. Look at the income you have at your side and based on that make your plan.