If we speak about retirement Africans think about the period in our 60’s and 70’s where no company acknowledges our services any longer. Retirement is no longer an era of inactivity but a system of rest from active service so one can focus on building one’s own dream. A young man of age 20 can decide to retire at age 40 to focus on other things than the 8 am to 5 pm rigor of work and monthly targets. That means he has 20 years to plan his financial independence.
Statistics shows that in Ghana out of every 100 retires only 2% retire comfortably: these group of people can buy a 4 bedroom apartment for their daughter after her wedding ceremony with the man of her dream without frowning on the effect of the figures in their bank account after such transaction. 23% of these retires must continue to work after retirement to increase their financials and sustain their livelihood.
They make a statement like “I like to work for a hobby”. It’s not true, nobody works for a hobby rather everybody works for returns. The remaining 75% will have to rely on their family and friends to survive because of their financial unpreparedness during their youthful years or working lives. And most of our parents in Africa falls in these categories of folks who have to rely on family and friends to work. They now make their children their retirement plan and use them as an escape route out of the present gloom of financial decadence.
Statistically proven, you need not less than GHC 180,000(USD 36000) to take care of a child from age 4 to 18 years. In Africa, it is at the age of 35 years that the average worker in Africa starts making a meaningful income. We call it take-home-pay meanwhile that figure cannot take you home because of myriads of expenses awaiting you. And less than 50% of the working class earn more than GHC 4,999 irrespective of their qualification.
The load on Africa alone can prevent you from planning your retirement because the current financial meltdown has enough facts to convince you not to put your money in any financial sector, however, you can’t toil with your retirement.
A few years ago, I had the privilege of meeting 2,000 pastors of one of the outstanding ecclesia in this nation on the caption “RETIREMENT PLANNING SEMINAR BEFORE, DURING AND AFTER”. These were my closing remarks: “every living being has the responsibility of having 4 astute financial independent products which is RETIREMENT ACCOUNT, SAVINGS ACCOUNT, INSURANCE ACCOUNT, and INVESTMENT ACCOUNT”.
If any of these four is not captured in your living on earth then your existence is questionable. I know many of the pastors took offense but I know the truth always hurts. If you have these things in place then you are at the position of fulfilling the scripture that says “A good man leaves an inheritance for the children’s children”.
Plan your retirement, as you eat for a living plan your retirement. As you jog and exercise for longevity, plan your retirement. As you seek a partner's hands in marriage and making babies, plan their future. Take time out and plan because retirement comes with challenges, it takes serious financial planning to avert the consequences. You can start little and end with a mega amount in your account. As we all journey towards preparing for eternity, let us plan for our retirement.
(Financial Wellness Advisor)
WhatsApp: 0276091371/Call: 0558109290