Retirement – Simply put, to stop work.
You may not have job now, yes, I know, but you may be aspiring for a job as soon as you get your degree or first school leaving certificate. This is a reminder that it does not just end with getting a job, you will need to prepare for when that job ends. You may also be aspiring to amass enough capital (money) to start that business you have always dreamed of but even entrepreneurs cannot work all the days of their lives. Entrepreneurs also need to prepare for when they stop work.
Old-age poverty is real and planning for retirement has a long-term positive impact.
This stop (retirement) may be willing or unwilling. “Willing” when you have reached the age or prepared or simply just achieved your goals. “Unwilling” when you were forcefully stopped (some people refer to this as retrenchment) or became terminally ill.
While retirement may feel afar off, time really does fly. A few years ago, you were playing “ten-ten”, dressing up plastic dolls, stinging others with paper and a rubber bands, playing football at the backyard and cutting out paper caricatures for game fights. You can also serve as an agent of change by sharing this information with your siblings, cousins, aunts and uncles. Let’s not forget, your parents too.
Act now, so that you don’t have to look back in regret
Old-age poverty is real and planning for retirement has a long-term positive impact. Though this is just one of the key indicators of positive financial health, here are a few things to know:
- When – When do you plan to retire? At 40? 45? 50? 55? 60? With the right planning, access to relevant information and accountability in acting out your plans; you can achieve your age target. (age/year)
- Where – Where do you plan to spend your retirement? Some cities are cheaper than others. Some more quiet than others. Would you rather leave close to family or far away? In your own home or a rented apartment? You must consider these factors when planning.
- Why – Would you be retiring because you want to or because you were forced to? You must be aware of the likelihood of forced retirement. In addition to your savings, how about creating a disability fund or take advantage of the benefits of disability insurance. Remember, anything can happen. Also know that you can save for anything (even retrenchment) if you have target.
- How – Will your retirement be supported by a pension plan* and/or other savings and investments) You need to save specifically for retirement and not just a general savings pool. You will need to be disciplined to achieve this. Nevertheless, some employers also create such an account for their employees, and you can voluntarily add to it.
*The pension plan is simply a pool of funds invested to provide income to the worker upon retirement.
Act now, so that you don’t have to look back in regret or have your people ask you why you did not take necessary action. More importantly, spread the word!
