Retirement plans start on your first day at work.
When I got my current job with the government, one of the key pieces of advice I got from two senior colleagues was to begin my retirement plans on the very first day. That may sound crazy, as the retirement period is usually far away. Here in Nigeria, retirement comes after 35 years of service, or when you reach sixty years of age while in service. This does not mean an individual cannot retire before such years of service or age. Ten years of work in an establishment qualify you for retirement benefits, which most often come as pensions.
However, I would divert a little to bring us a picture of retired workers and how life has been with them.
At age 60, especially in this part of the world—Nigeria—there is a high chance that gray hairs would have developed, probably as a result of harsh economic situations that may carry along family or work stressors. The man in retirement oftentimes looks older than his age, and unfortunately, the troubles of aging, such as medical illnesses, are right around the corner waiting for him, if not already a competition for his life before reaching the age of retirement.
The retired man who may be lucky to have his spouse alive may fall into the trap of empty nest syndrome (a situation whereby the children have grown and left the parents to live by themselves) as a couple or eventually as a single parent and would be faced with mental battles of loneliness and perhaps regrets.
Let me refrain from describing too much what retirement looks like and mention a few plans of mine as regards a conscious retirement plan.
A.) Pension contributions
My organization happens to deposit a significant amount as savings towards my pending pension when I retire. Sincerely, based on the harsh economic situation in Nigeria at the moment, the monthly contribution towards the pension, which is a little above the minimum wage, seems excessive, but I am certain the retirement stage would get me some millions of Naira. I only wish such money could be saved in dollars instead; nonetheless, it's fine for me, as it would be better than not having any at all.
B.) Cooperative Society
Also at my workplace, I joined two cooperative societies, and I plan to increase my savings with them. I'm saving about a fifth of my monthly income there already, and hopefully, if the economy improves and salaries get some weight, I should consider saving extra. Some two years ago, I joined a private cooperative society, but unfortunately, I have been irregular with my savings with them, even though I know I have close to $200 saved up there already. I hope I can save a little more with them as well.
C.) Savings and Shares
Thankfully, Hive is a form of savings and investment, and I'm most grateful for this beautiful opportunity. About a year ago, my cooperative society helped us purchase some shares, and the certificate was issued, though it was N20,000 per individual then. Last week, I was told the window to buy more shares is open, and once I get some cash, I'll love to buy some more.
D.) Setting up a business before retirement
I know of a few people trying to set up businesses when they have less than a year to retire. I see this as ill-advised because the logistics of business survival may take a negative toll on them. I hope to set up a few sustainable businesses well before retirement. These businesses would keep me active, and because they would be established by then, my work would be lessened, especially with a board of directors or managers. People often want to scam or swindle the elderly of their retirement benefits, but for me, having a business running before then would be a good guide, as the money can easily be targeted in the right direction.
E.) Housing and cars
I would do myself well by having a house to myself before retirement. I do not want to use my retirement benefits to build a house or be shuffling house rents. Having a car or two would be good, as cars have become necessities rather than luxuries.
F.) Health Insurance and Assurance
Health is a major challenge for the elderly, and oftentimes, retired people do not have enough financial resources to cater for their health. I will do myself a lot of good to have some money earmarked for health insurance and, if possible, life health insurance. Though the charges may be exorbitant, it'll be good if my properties are insured.
G.) Lands and real estate
I currently have some plots of land in some strategic places. I hope development gets there soon, and we can have them as real estate if the funds are available. I would love to acquire some hectares of land for farming, as I am certain I would love to keep farming even after retirement.
H.) Saving money for my children
Unfortunately, there is a chance I will have kids at the university while I retire since I am yet unmarried, but one good thing I would do is create a savings account for each child and save for them till they mature enough to fend for themselves.
I.) Keeping fit
Currently, clinical practice encourages preventive medicine more than curative medicine. Right now, I consume less sugary and salty substances. I have reduced taking gaseous drinks and preferred to take water, even on occasion. I need to take more strolls, but my recently purchased bicycle helps me do some exercise when I am at home.
IMAGE CREDIT IS MINE
J.) Less involvement in matters that do not concern me
I have currently praised myself for not involving myself in matters that do not concern me. In fact, if you don't call me, you won't see me there. This attitude makes my life less burdensome to myself and to others. I'm certain such an attitude, even after retirement, would help me to stay content with what I have.
Thank you for reading. I would love to have your comments and contributions.