The Secretary General of the Association of Senior Civil Servants of Nigeria (ASCSN), comrade Alade Basir Lawal, in this interview with Business Editor, Sylvester Enoghase, said that the needed figure for retirement of an individual is like a destination on a map that would give the direction as he saves, invests and creates his overall financial plan. Excerpt:
Do you detest or dread that word retirement?
I do not detest retirement because it is a way of life. Retirement cannot be wished away, because it is practically impossible to work all ones’ life, even in self-employment, except that life is cut short early by death.
In my view, if you as an individual live to advanced age, there is that point where, biologically, your body will begin to give in to years of toil and the process of natural aging. Do not also forget that when one is a bit unlucky, that process of yielding to physical constraints could come prematurely due to physical incapacitation of one form or another. And so, what all this simply says is that one way or another, the day will come when even the strongest man will be unable to actively fend for himself.
Sir, what then do you suggest?
The reality is that anyone that truly loves himself will not wish to stretch on until that point where his body refuses to co-operate.
This is because part of how the body system can be helped to transit into graceful aging will be to spare it that sustained flogging, even before it protests. In effect, the healthy thought you should nurse for yourself is that you ease off your labour early enough.
Won’t that mean becoming idle?
Not really. There are many ways to stay active without the struggle for basic livelihood, which is the lot of the ill-prepared person. If you have built yourself a comfortable nest egg to take good care of retirement, then you can afford other means of maintaining fitness, as much as the age can permit.
So, not only should you be interested in comfortable retirement, you should also work for timely retirement.
I want to warn here that if you are among the roughly six out of 10 individuals who has never tried to calculate what they need in retirement, do it immediately. I suggest you should not be carried away because the needed figure is like a destination on a map, giving you direction as you save, invest and create your overall financial plan.
If you set a retirement savings goal, but you have forgotten about it, it is time to dust it off for a careful review. You should be looking at your plan periodically, at least every three years
How do you come about the savings goal?
Retirement planning is a whole area of personal finance that is focused on how to ensure that life in retirement is on one’s terms and in comfort. The best guarantee to a retirement life in cool comfort is simply to act early – if possible as soon as one begins to earn income. Starting early to prepare for that date is, ironically, not too early: you need all the time, especially if you desire to achieve excellent preparation in a painless manner.
Starting early is great for the fact that it puts this goal on the front burner as you run through your career.
When you start late, the first challenge is the enormous pressure you undergo in trying to remedy a seemingly bad situation. The second is that your best effort, because it cannot benefit sufficiently from the effect of time, will most likely yield limited growth impact.
But starting early puts you in the best position to take various initiatives that will accelerate your progress towards the objective. And for you to know that you are making progress, compare your actions with someone that fails to realise the need and takes no action, until perhaps too late in the day.
People that fail in business are people that will crowd pension payment centers to wait and pray for payments that are not forthcoming.
Do not forget that taking prompt action puts you immediately in a position to take advantage of the magical power of time and factors like compounding, which are known to exponentially grow investments, while starting late denies you this unique multiplier impact, meaning that you achieve far less results than potentially possible.
What then, are the best options?
The best options before you can get the best out of your physical condition while still strong and take timely steps to provide adequately for the later part of life, which will suffer the impact of the rigours of today’s activities is to begin early.
This is because beginning early permits a gentler ascent in building the resources you need for the retirement period.
Also, never think again of retirement as the concern of those near retirement age and don’t deceive yourself, even as a young person, into believing that there is too much time at your disposal, but ensure that the needed tools of personal finance management that can give you reasonable control over the quality of life you will live in retirement are put in place as early as possible.
You need to view the matter of retirement planning and provision as serious.
The right way to go is to begin in good time to tidy up your future. An important step in doing this is to discover the tools that can be put to use to achieve that purpose. The time to begin to act, if you want to make life easier, is now.
Do not forget that savings and investments alone may not be enough to adequately fund your retirement. This is because you may want, or need, to delay retirement. If so, you’ll have plenty of company. These days many workers are opting to “downshift” into retirement by working part-time or longer than they’d originally planned.
Source : Independent