If you’ve worked for a period of time, there will be a moment you will have to quit and face life in other dimensions. It is very good if you don’t have to hustle at an old age but relax and enjoy your remaining days on earth. This can be possible by planning before this time; saving a fraction of your earnings for this purpose. It is, therefore, safe to prepare for the future even when you’re young.
In Nigeria, public officers/civil servants have part of their salaries going into a pension scheme automatically, which would be received on retirement. There are also people who invest for the future through their personal savings. Business owners, entrepreneurs and other workers too have to plan for their retirement because they have to quit or step aside in the long run.
Many may have complained that what they earn is not enough to spend now not to talk of the future just as the case of Miss Mary, a civil servant “In my opinion, we are forced to save in the name of pension. I do not like that. They pay us little money out of which we have to cater for our immediate needs and also save even though the money is barely enough to eat.” No money is ever enough for people, even billionaires also work to have more, part of it has to be saved for future use.
For the future not to come as a surprise, it is very good to plan ahead even at a young age. The little amount that goes into a personal saving for retirement will really come big after some years. For example, if you save #500 per day, you would have saved #182,000 at the end of the year and if you are consistent for years, it will be a great lump sum.
In a harsh economy like Nigeria where people, as a result of poverty, find it hard to eat three square meals, the larger percentage doesn’t see saving for retirement as a better option than eating to survive. For those who are engaged in one job or the other, it is advisable to save for rainy days. This is when you can boast of your service years and live a fulfilled life.
Many people start saving for their retirement from age 40-50 when they feel they have catered for their family to some point and now realize the future draws near. To be on a safer side, having a savings plan for retirement at an earlier age is a smart thing to do as the time is ticking away and no one is getting younger.
In a society where young people tend to spend than save, I asked some young folks about ‘saving for retirement’ and if they really like the idea of saving for the future. This is what they had to say:
Saving for retirement is very good. It is a better thing to do so that one can use the savings to invest in assets that can fetch money till death. I know of companies that takes care of that if you are a civil servant.Mr. John, Ado-Ekiti.
I know some people plan for retirement but many don’t do that due to inadequate knowledge of the benefits attached to it while some know the benefits but their income can’t cater for their immediate needs not to talk of setting some aside for retirement.Mr. Taiwo, Akure.
I love the idea of saving for retirement as it secures one future.
People plan for retirement and some people now as a matter of fact invest. I’m also working on investing towards retirement.Miss Spencer, Ibadan.
A lot of people save for retirement. There is the automatic saving of pension which they collect after retirement. The funds are controlled by different pension companies. There is also the personal savings for businesses they want to invest in and plans they want to execute after retirement.Bishop Tunde, Ibadan.
I like the idea of saving for retirement. I have an account already with a pension fund company.
One who waits so long in a job till the old age of retirement is sure to be gathering some cash while at the job to make his/her aftermath augur well. It is one-way people think of securing their future.Ayodele Ayanfe, Lagos.
Saving for retirement doesn’t seem like an idea to dislike to me.
As for me, I’ll rather have people save for a short term and invest rather than saving for a long term for the purpose of retirement. Things have changed from what they used to be. Average life expectancy has relatively reduced so the chances that you’re going to live even to the retirement age is slim. So, I’ll advice you do what you want to do now. Invest and think entrepreneurship.Mr. Alao, Abuja.
Planning for retirement
You can start to plan for retirement now. Saving really matters in your plans for the future. You have to start saving, keep saving (be consistent), and stick to your goals. If you’re not saving, it’s time to get started. Start small if you have to and try to increase the amount you save each month. The sooner you start saving, the more time your money has to grow. You just have to make saving for retirement a priority. Also, devise a plan, stick to it, and set goals.
Another important thing is to know your retirement needs. If you dream of living quite big after retirement, then you have to plan ahead and save more. You just have to take charge of your financial future.
When you start saving, you don’t have to touch your retirement savings for any unnecessary thing. If you withdraw your retirement savings now, you’ll lose principal and interest and you may lose tax benefits or have to pay withdrawal penalties.
You can also pay money into an Individual Retirement Account (IRA) and start saving as much as you can. IRAs can provide an easy way to save. You can set it up in a way that the amount is automatically deducted from your checking or savings account and deposited in the IRA.
Benefits of saving early for retirement
There may be dozen of excuses for not saving for retirement nowadays, and it’s a shame, as it will really be a problem in the long run. Saving for short term might be an option but saving for retirement sake is still something we need to do as soon as possible.
Here are some benefits of saving for retirement at an early age
You’ll be able to afford what you want when you retire: if you can afford to save at a younger age, then you would definitely be able to afford everything you really desire after retirement. If you can save #10 million naira from age 40 to your retirement age, then look at what you could have saved if you had started saving 10 years earlier. When you start at a young age, there wouldn’t be pressure to reach your mark and you’ll definitely live the life you want for yourself.
You’ll be able to retire at an earlier age: the sooner you start saving for retirement, the sooner you will be able to afford to retire. It also depends on how big you save for the future. When you have a big amount in your account, then you can quit and live your dreams at an earlier age and be fulfilled.
You’ll have a stable retirement income: if you start saving as early as possible, you don’t have to worry about running out of money when you are old and this decreases the chance of you having to work again.
You won’t have to rely on children/family: if you have spent all your life catering for your children and family, expecting them to pay you back when you are retired, you may end up having it the other way round. But if you save as early as possible, your retirement income will be enough to live your life without any hindrance.
Remember you have to cultivate the habit of saving, not for today but for tomorrow.
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