I may not have followed this rule from the start but let’s say I hope someone out there considers it.
About 80% of the world’s third world countries’ youths work to earn the “daily bread”. Have you noticed that most of the employed youths only live for the next day? Where could the problem be?
In Africa, most individuals start thinking of retirement at least at 50 years of age. The average retirement age in Africa is about 65 years though not official. In the UK for example there exists a way in which someone can calculate when they can retire.
The question that comes to mind then is, “when should one start planning for retirement?” The moment you get your first pay check is the time to start planning for retirement. Many schemes have been set up that help individuals plan for retirement some of which include; Investment clubs , fixed deposit accounts, retirement accounts, real estate, low risk investments like Certificates of deposits and Treasury Inflation Protected Securities (TIPS) among others. Another way to help ensure secure retirement is to set a monthly target – that way you strive to hit the goal in all possible means.
Did you know a big percentage of working individuals rely on the social security funds to plan for retirement which is about 10% of gross monthly pay that the employee voluntarily surrenders to a government institute; so by retirement age, an average individual is able to clear out their security funds within 3 years of retirement yet they may still have 30 or more years to live. This leads to one bouncing back to odd jobs or relying on family for funds.
As a saver with Mazima Retirememnt Benefits Scheme in Uganda; a scheme that allows individuals save as low as UGX 1000/ a day an equivalent of about USD $0.25, I always look back and agree with that the CEO re echos
“To those who do not expect their children to be their retirement insurance policy.” >> Livingstone Mukasa<<
May we consider lifting the retirement burden off our children’s shoulders!
According to The Balance (a website on financial empowerment)“… the best way to retire early is to start planning ahead. You’ll need to save a lot, find ways to live on less – or, even better, do a bit of both.”
We all need the Good life, but let us face it, isn’t it better to work when we still got the energy, can access the resources needed and then enjoy later?
Are Entrepreneurs Already Covered at Retirement?
Another category is the entrepreneurs – the self-employed population. At times it seems obvious that self-employment means enough funds, a secure future but this should not be the case. Learn to separate business finances from personal finances, set a monthly pay like any other employee to ensure that personal needs do not encroach on business funds.
Most young or upcoming entrepreneurs get a mentality that retirement is covered, “after all the business is mine”. The business being yours does not guarantee future funds; the trick is to save as you would, like any other employed person and in the long run work smart for your business to yield returns that will keep funds coming in even at a point when you are unable to walk into your business to supervise. Work to a point where money will yield more money.
Last reminder; Save, save and Invest to retire happy and comfortably.