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The majority of Nigerian workers both in the public and private sector have rooted phobias for the word ‘retirement’. This can be pictured as a result of the status of past retirees. While some died in the process of trying to get their entitlement, some live in abject poverty.
It is important to remember that retirement can either be desirable, terrible or as the case may be. Depending on the preparation plopped before you embark on it.
What is Retirement?
Retirement is the withdrawal from one’s position, occupation, or from one’s active working life. Retirement is cessation from active working life and can either be voluntary, compulsory, or forced, and mandatory.
Why Do You Need To Plan Ahead For Retirement?
It is the responsibility of the government all over the world including Nigeria to see that its people are well taken care of, And enjoy the basic needs a citizen should enjoy irrespective of whether rich or poor, working, unemployed, or retired.
This is why you need to consider planning ahead of retirement so that fending for these needs after retirement will not have negative turns in your life, and as well as being caught off guard.
What is Retirement Planning?
Retirement planning connote financial, physical, and psychological preparation reserved against retirement.
How Do You Plan For Retirement In Nigeria
1. Finacial Planning
Financial planning is one of the major retirement plans in Nigeria which entails: earning, saving, investing, and ultimately the distribution of money which is meant to be used in other to sustain one’s self during retirement.
To be financially independent today in Nigeria, importantly after retirement, you need to plan financially.
Three main factors are considered when financial planning is a concern;
Earning
This Is the first stage to sustainable income in finance. But in Nigeria today, before an aspired retiree can think of plopping plans against retirement, he must at least be receiving money either on a daily, weekly, or monthly basis.
Hence, it is through this, adequate plan/s will be put in place for retirement.
Saving
Savings for retirement or upon retirement is never too late or too early. But it is advisable that you start saving for retirement the day you start receiving your salaries, or wages.
In Nigeria then, most retirees depend on relatives or their children to cater to their needs after retirement. This often occurs because such a person had no savings before leaving office. But thanks to the Federal Government of Nigeria, in 2004, they put in place a pension system known as The Pension Reform Act 2004 that would address the issue of pension administration.
This gave rise to what is now known as Contributory Pension Scheme (CPS), instead of the then Defined Benefits Scheme (DBS). The scheme provides retirement saving options geared at putting a retiree on monthly income even after he or she must have retired from active service.
Furthermore, in spite of the pension, it will be of great advantage to put aside some percentage from the monthly earning. Because past research has made us understand that before a retiree can be considered to be financially independent and okay, they must have saved about 15 per cent of their preretirement income.
Now consider if you save 15 per cent of your salaries for 65 years. It will surely go a long way together with your pension in sustaining your long-term goals such as children’s education, acquisition of property, children’s marriage, holidays, unforeseen circumstances (uncertainties), etc.
This is one of the highly advised retirement plans in Nigeria today.
Investment
investment is the outlay of money usually for income or profit. Furthermore, it is also regarded as the application of funds in other to hold assets for a longer time in the hope of achieving gains and/or receiving income from those assets. To double the income, investment is a nice option to give a shot.
Although investment in Nigeria comes with great risk, that is why it has been advised to start savings at an early stage so as to go into an investment at an early stage irrespective of the risk of loss, or the risk of getting scammed, or any other form of risk. Because you can probably make back another money over the years.
Besides, as regards retirement plans in Nigeria, the real state is an area in which a prospective retiree can invest. This has been confirmed by the national bureau of statistics which has contributed up to 9.22% to the GDP in 2020.
Others include cryptocurrency, stocks, buying of shares, life insurance policies, small scale business, oil wells, equities and bonds, acquisition of landed properties, education, and so many other business opportunities of their kind are also considered as considerable retirement plans in Nigeria.
2. Physical Preparation
Another retirement plan all Nigerian workers are to pay attention to is physical health. If adequate care and attention are not given to the body while in service, you might end up spending all your life savings at the end of your retirement on the same health you failed to give attention to. Therefore, it’s important to maintain a healthy lifestyle. Eat well and exercise regularly.
Take adequate rest and try to get at least 8 hours of sleep. This is very beneficial to good health. Avoid drug abuse and self-medication. Take out time to visit your doctor and have regular medical checks.
Following this advice will help you health-wise, enabling you to enjoy your retirement when you finally retire.
3. Psychological Planning
All workers must consider how to avoid any form of psychological trauma before they withdraw from service as average Nigerian retirees have died as a result.
You need to get used to the fact that there is a reduced or no income (having a pension as the only means of income), economic hardship (inflation), work under load which brings in boredom, the monotonous pattern of life, loss of status and authority within the society, social isolation resulting from reduced mobility, lack of information on community and national health issues, among others.
Conclusion
It is necessary to make hay while the sun shines. So while in service, adequate preparation is to be put in place to live up to standard after retirement.
Most employees today seem to forget their employers when they retire from work leaving lots of retirees in shabby condition because they rely only on the stipends from their employers.
Therefore, the best time in avoiding such is now and make use of these retirement plans in Nigeria now.
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