To Retire Well in Nigeria, Start NOW! Retirement is an unavoidable event when you work for the government or corporate organizations. So, anytime you hear about retirement, what do you think of? Our findings reveal that most young people don’t consider retirement or the fact that they would not able to work with their organization or the government after a certain age.
How to Retire Well in Nigeria
To Retire Well in Nigeria, Start NOW!
Retirement is an unavoidable event when you work for the government or corporate organization. As a prospective retiree, you need to start to work towards a plan for guaranteed pension that will more than take care of you.
So, anytime you hear about retirement, what do you think of?
Our findings reveal that most young people don’t consider retirement or the fact that they would not able to work with their organization or the government after a certain age.
However, it is very important that they begin to plan for retirement from now on. The earlier, the better if you are a salary earner.
The Desire to Retire Well in Nigeria
We all want to live to a good ripe old age, and be healthy and financially free to enjoy life. Nobody wants to be a liability to their children or relatives in their latter years.
However, this is not always the case with everybody.
While you can decide to retire, most employees are retired because of their country’s laws or their company policies that say so.
The Responsibility if you want to Retire Well
As an individual, it is your responsibility to make sure that you are comfortable life and financially able to live well after you retire. In fact, you have to consider inflation, your health, and standard of living your desire in your planning.
It will be wise to talk to a credible financial adviser in Nigeria.
6 Steps to take to Retire Well in Nigeria
1. Retirement Goal
Great achievements all have one thing in common – a goal.
Set a goal of how well you want to enjoy your retirement. Include being able to take care of your health, travel, starting a business, whatever you desire.
2. Estimate what it will cost to Retire Well in Nigeria
How much do you need to enjoy your retirement? This will depend on various things. You estimate the cost with the help of a financial planner or advisor or an accountant.
While it is not easy to state categorically the exact amount of money you will need to retire well in Nigeria. Some experts say that your retirement account should have as much as eight times the money you currently make in a year. Whatever the figure, the important thing is that you work out how much you can and will save towards your retirement.
3. Plan How to Save to Retire Well in Nigeria
When you want to save, you need to plan how you will say.
Based on your estimated cost of retiring well, work out with your financial planner or accountant how much you will need to save regularly to be able to reach your retirement goal.
A lot of young working Nigerians do not think or plan for retirement but it is important that they start very early in their career to plan for their life after retirement many years to come.
4. Retirement Savings
After estimating how much you need to retire well, you have to budget how much you will be spending on a monthly basis that already includes your savings contribution towards your retirement.
Open a retirement savings account dedicated only to your retirement. The easiest way to do this is to automate it. That way you won’t even notice that you are saving for retirement. You can ask your bank to put a standing order on your account, transferring the amount you have calculated to save on a monthly basis from you salary and contribute it to retirement account you have opened.
5. Add Structured Retirement Plans
In addition to your personal retirement saving, if you work in a corporate or government organization, you may already have had a Retirement Savings Account (RSA) opened for you under the current Contributory Pension Scheme in Nigeria.
Here, a part of your salary remitted into a RSA for you by your employer. Note that your employer also makes a contribution to this account for you.
Find out from your HR department if your employer has other in-house retirement plans which you can take advantage of.
6. Multiple Retirement Investment
There is the cliché that goes like “Don’t put all your eggs in one basket”.
This is a wise advice when it to comes to your retirement. It is a smart thing to have multiple investment accounts with one or two that are retirement investment accounts.
This strategy helps you hedge or protect your future so that if an investment portfolio goes bad, you will not be terribly affected.
Several investment options are available, ranging from Treasury bills, Nigerian Federal Government Bonds, Gold and Precious metals, Shares, Real Estate investments which you earn rent from or use for farming.
Don’t Retire Well, Keep Adding Value
The best retirement strategy is not to “retire”. Retired but not tired. Even after you are officially retired, don’t stop being productive.
This means you need to keep adding value and being productive even after you have retired. Research shows that many retirees, died a few years after retiring because they find that they have become redundant.
Invest in businesses that you can do from your home like small scale catfish farming, raising broilers, rabbits and other not too physically stressful but commercially viable and financially rewarding businesses if that is what you like to do.
If you love trading, you can distribute fast moving consumer goods like beverages or you can distribute cement etc
You can also act as a consultant to your former employer and their competitors. The options are as vast as your mind can conceive.
If you have saved up a substantial amount of money by the time you retire, these options become easily realizable.
There are three stages in life: The learning stage, the earning stage and the yearning stage. Most of the readers of this article belong to the earn stage of their lives. As you earn the monthly salary, do not get overly excited and blow it all up.
Budget and stick to it consistently. And do this while you also enjoy life in moderation. The confidence that you will live comfortably and retire well in Nigeria for the rest of your days will add more enthusiasm to your life.