By Suleiman Tajudeen
CITIZENS COMPASS– Planning for retirement is crucial for everyone to ensure a financially stable and comfortable post-work life.
With the rising cost of living and inflation rates, it is essential to start planning early and make informed decisions about retirement savings and investments.
Retirement planning should start from the day the worker resumed work in his/her office for him/her to retire gracefully. Experiences have shown that good and early retirement planning helps potential retirees to have enough knowledge on the ways retirement will affect their lives hence the need for adequate preparation for statutory retirement or any other form of retirement.
Understanding retirement landscape
In Nigeria, retirement landscape is characterized by a mandatory Contributory Pension Scheme (CPS) for formal sector employees. However, the scheme’s coverage is limited, and many Nigerians, especially those in the informal sector, lack access to pension plans. This highlights the need for individuals to take proactive steps in planning for their retirement.
Basic Steps in retirement planning
The major aim of the retirement guide is to help the retiree to achieve the noble goal of retiring gracefully and the major steps are as follows:
Know when to start retirement planning, know your retirement needs and start saving early for good results.
Figure out how much money you need to retire with.
Prioritize your financial goals, contribute to your employers retirement savings plan.
Choose the best retirement plan that will favour your needs.
Select your retirement investments that will satisfy your financial needs.
Eliminate unnecessary expenses after retirement.
Don’t touch your retirement savings.
Find out about your social questions relating to retirement.
Ask questions for clarification about retirement.
Your retirement benefit should not be wasted on unnecessary worldly materials.
Benefits of Retirement plans
Retirement planning simply means preparation for one’s future life so that you continue to meet all your goals and dreams independently. Here are some of the benefit of retirement planning that can help you as an individual:
To maintain the standard of living
To be prepared for a longer life.
To be emergency-ready (i.e. not want to depend on anyone in case of any financial emergencies or medical expenses).
To fulfill retirement goals and objectives.
To fight inflation (you can invest in advance and grow your money to fight inflation).
To leave a legacy (legacy of hard work is left behind for your co-worker and family).
It enables you to estimate how much your need for your retirement period.
It enables you to get regular income after retirement.
Your income is longer tax (i.e. you enjoy tax free income).
Ability to
To be continued
Dr Suleiman Tajudeen, CEO and Director of Clinical Psychology, Clear Mind Psychological Consult, KM 12 ,Ojo, Lagos StateKm 15 Badagry expressway, Ojo,
Lagos State.
(+234) 0803 402 4457
