Why retirement planning is a necessity to all

By The Standard | Feb. 19, 2019 | 5 Min read

There was an overwhelming response to my earlier article which I once wrote on retirement planning. Even now, I am receiving questions regarding the topic and so it’s important to write further on the subject.

guest column: Emmanuel Zvada

I have met a lot of people; some who are in their late 40s and other in top positions. And whenever we bring up the topic on retirement, they often become wobbly. In fact, just the mere mention of the word “retirement” makes them shift their mood.

Retirement is something that we should not be afraid of, but rather be happy as we know that it is coming, thus giving us time to plan for it.

In fact, after retirement, you can even still be able to pursue your unrealised dreams and still be active and busy.

On the same note, for the younger generation, planning your retirement is now even if you are years away towards your retirement.

Start saving now, at the same time investing wisely, for with sufficient preparation, your retirement years can even be the best years of your life.

One may be getting huge salaries now and everything seems to be well, but one question which remains and needs to be answered by you, of course, is: “What next then after retirement and is there any sustainable plan” so that your lifestyle will not be affected?

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Your stay in the company will not guarantee job stability. In fact, for those nearing retirement, the undeniable truth is that whenever a company has to downsize, employees nearing retirement tend to get axed first, together with the beginners and under-performers.

When a business has to cut expenses again, employees nearing retirement, beginners without much experience or under-performing workers are the victims.

No one can argue against this, as it is the company’s prerogative to choose its employees for its own interests.

All this should find you prepared, as there is life after retirement or being laid off.

What is important is to approach retirement with a positive attitude.

Remember that retirement will allow you to be free from your strict routine and busy schedules at work.

You will rather have plenty of time to relax while you are earning a living from already invested and running projects.

Some of the few tips you may consider doing before and after you reach retirement:

Preparing and planning for retirement

Realistically, the majority of people only start considering a pension scheme closer to 30 years old. This is if their company has not created a scheme for them.

Only a quarter of people between ages 18 and 30 are actually saving for some kind of pension and retirement plan. Retirement represents a great change in your life.

If you are unprepared, this will weigh you down emotionally, physically, and financially.

When planning for retirement, you need to consider a variety of factors, such as when your retirement will be, what you will do after retirement, where you will be staying after retirement, and, of course, what you will be doing on retirement.

Start saving now and be strict with your finances

Some people are not motivated to save money, but it should be necessary, especially as part of retirement planning. In actual fact, some people really want to start saving, but they do not know where to begin.

You need to save for the future and saving should start the moment you realise that you have a future.

Once you know why you are setting aside part of your salary, deciding to save rather than spending your extra money should be easier.

It is more advisable that you track your expenses, and make sure you buy only what you need rather than overspending. Being good with money takes practice.

The more you make these habits part of your daily life, the easier it is to manage your money and the better your savings will be.

Get a health plan earlier Health insurance is an insurance that covers the whole or a part of the risk of a person incurring and it will be good to have a health plan while you are at work.

Medical treatment is expensive and you must have a plan to cope with its escalating costs, especially way before your retirement.

In actual sense, it will be best to look around for a reliable and affordable health management company that can be used even after retirement.

The reason behind is that medical emergencies are very expensive and they are common.

If you have the misfortune of undergoing a medical emergency without insurance, it is easy to find yourself with a crippling amount of medical debt, and seemingly no way out of the mess, hence having a health plan will be beneficial even after retirement.

Here are options you may consider after retirement:

Start your own business

You may consider being an entrepreneur; the reason behind being that you already have experience and it will act as an advantage in putting up your own company.

To some, the best and perfect time to start your own business is after retirement, though some consider early retirement.

Perhaps you may have just received your retirement package, and if you feel you are not yet ready to retire, then choose to start a business.

Just remember to invest your money wisely so that it can be profitable and bring justifiable return in the near future.

Make sure you have a business plan and conduct feasibility studies to determine the marketability of your products or services, or the business you want to venture into.

Be a consultant

If you have years of experience in the workforce, there should be a way for you to contribute your expertise while still making the most out of your retirement.

Independent consulting is where many retirees are turning to so as to share their knowledge and experience.

In the consulting job, your age may even be an advantage as it is believed that as one matures, one gains more expertise, especially in offering consultancy services.

The reason is that you will have already mastered your craft from your many years of experience to an extent that imparting your expertise will not bring any challenges.

Let us all plan and prepare for our retirement for the older we get, the higher our risks become.

So, when you think about retirement planning, here is what it really means: When you are not earning an income, how will you be provided for? Where is the money for rent and utilities going to come from? How are you going to pay medical bills? Where are you going to get the funds for school levies for your children.

All these questions should prompt you to start planning for retirement.