It is never too early to plan for retirement
By Samson Osero
Before the mid-90s employees held jobs until the official retirement age. Those in the civil service worked under permanent and pensionable terms that ended on attainment of 55 years mandatory retirement age. Words and phrases such as retrenchment, golden handshake; voluntary early retirement; right sizing; downsizing and restructuring were unheard of in HR circles.
Today these phrases are so common that employees live with fear of possible termination. The unpredictable work environment has compelled employees to begin thinking of retirement as soon as they are hired.
While working full-time, many employees are too busy to pause and think of the funds they will need for a comfortable life in retirement. Others contend that the National Social Security Fund (NSSF) contributions; institutional pensions and terminal lump sum payment will be adequate to meet retirement financial needs.
Unfortunately, terminal payments are exhausted within a short period after retirement. Pension, if any, will not enable one to continue living the same lifestyle as before. For employees to avoid financial embarrassments during retirement, they should begin saving adequately now. The savings may be used to obtain Sacco loans for investing in income generating assets or other profitable investment instruments.
Besides increasing contributions to employer-registered pension schemes, employees could also raise NSSF ones to boost the retirement kitty.
One of the controversial issues on retirement matters is relocation to either the rural area or within town. Anyone intending to return to the rural area, where they do not own a house, will be forced to use their terminal money to construct one. Moving to a cheaper residential area within town will be a temporal solution because irregular income means lack of money for rent. Owning a house in whichever location will enable a fresh retiree to start his or her retirement on the right footing.
Full-time employees have resorted to starting and running side hustles to meet their expenses. The working class is continually combining side hustles with full-time employment as a retirement planning strategy.
As one plans for retirement, it is advisable to develop and implement balanced-diet meal plans and undertake regular physical exercises.
It is important to nurture good family relationships while young to facilitate future smooth transition into retirement. Poor family relationships will make psycho-social adjustments in retirement a nightmare.
The writer is the author of Transition into Retirement
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