The Managing Director of EDC Investment Limited has cautioned parents against depending on their children for financial support after retirement.

According to Paul Mante, this is one of the many “money mistakes” some workers make during their working lives and end up disappointed.

“Money mistake number four is depending on your children for financial support. When you have retired and you want to depend on your children for money, you may be very disappointed,” he said Wednesday.

Educating listeners on retirement planning on JoyNews’ AM Show, Paul Mante outlined a number of money mistakes to avoid when one retires.

According to him, retirees should go for a moderate apartment instead of a luxurious one.

“If you can afford it great, if you are an average income earner, don’t make that mistake because it comes with a high maintenance cost,” he said.

“It comes with high utility cost so don’t retire and go and live in a huge house else you will use all your pension to buy electricity credit and to maintain the house,” he added.

Mr Mante said it is also an error for one to be idle after retirement as being inactive affects one’s health. Therefore, one must be active even after retirement.

“When you retire, you are just at home, you are not active, your health is likely to deteriorate and you will have to spend money on your health, so that is a money mistake.”

He also cautioned against spending “too much money too soon” while on retirement.

“You should know that once you retire, you cease receiving a salary. If you are on pension, then you will get some monthly payments.”

The EDC Boss recommended that workers should not commit their retirement funds into capital intensive projects.

“You retire and say I’m investing in farming or I’m investing real estate. It’s a money mistake because you see, when you are over 60, that is not the time to take a risk,” he advised.

Another money mistake, he noted, is having many cars when one is on retirement. “No intestate planning, people retire and they don’t have a will. What happens to your hard work when you are no more must matter to you. The fact that you have a will does not mean you are going to die tomorrow.” he added.