As we get older though, we eventually get to a point where we either find work that is less stressful or simply stop working for a living altogether. A person can decide by himself to go into retirement.
Other times, people retire because the law of their country or their company policy says that they have to. It is up to every individual to make sure that he is able to live a comfortable life when he retires. It may be helpful to talk to a financial adviser.
Here are 5 steps on how to
work towards a comfortable retirement.
1. Making
a plan: Saving begins with a plan. You need to work out how much you need
to put aside from time to time to be able to reach your retirement goal. It is
not easy to say exactly how much money a person will need when he retires. This
will depend on many things. Some experts say that your retirement account
should have as much as eight times the money you currently make in a year.
Whatever the figure, the important thing is that you work out how much you can
and will save towards your retirement. Many people, especially young people, do
not think about retirement but it is important that they start as early as they
can to plan for it.
2. Start
saving: you need to come up with a budget which sets out how much you spend
on a monthly basis. This budget should include your savings contribution
towards your retirement. You can open a savings account especially for the
retirement savings. You can give your bank a standing instruction to transfer
the savings contribution into the account you have set aside for it every
month.
3. Take
advantage of Retirement Plans: You may already have a Retirement Savings
Account under the current Contributory Pension Scheme in Nigeria. Under this
Scheme, part of your salary is put into a Retirement Savings Account for you by
your employer. Your employer also contributes to this account. Your employer
may also have retirement plans which you can take advantage of.
4. Try to
have more than just one type of investment: You know the saying "Don't
put all your eggs in one basket". This is helpful when you are trying to
save so that you would not be terribly affected if the investment goes bad.
There are many investment options available; these include investing in Treasury
bills and Bonds, Shares, investing in property which you can rent or use as
farmland, and several other options. You can also invest in gold and other
precious metals.
5. Keep
working if you can: When you are close to retirement, you can think about
the option of a reduced workload with reduced pay. This helps you to still earn
money before you actually leave your work. Some employers may be able to offer
this option.
Once you have retired, there are a number of
businesses which you can set up depending on the money you have and what you
are interested in. These include selling or distributing consumer goods like
food, bottled or sachet water, soft drinks and such, setting up a restaurant,
starting a transportation business, and many others.
You may have saved up a lot of money by the time you
retire. Do not get excited and spend it all at once. Draw up a budget and stick
to it. This does not mean that you should not look forward to living
comfortably for the rest of your life; it simply means that you should live
wisely.
This has been courtesy Skye
Bank as part of The Bankers Committee Financial Literacy Public Enlightenment
Programme brought to you by The Bankers Committee, comprising all the
commercial Banks in Nigeria and the Central Bank of Nigeria, CBN.
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14 comments:
a.k.a EDWIN CHINEDU AZUBUKO said..
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This one no dey applicable to Nigerians abeg..... Wetin yu wan save when wetin we dey get frm this country day to day na peanut......
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***CURRENTLY IN JUPITER***
Hmmmmmmmmmm.
D problem is the money collection after retirement from d pension scheme mgrs
Nice one, thanks for sharing! Linda take note!
Nice one, thanks for sharing! Linda take note!
Nice one, thanks for sharing! Linda take note!
Foolish comment no save your eye go clear to ba ya...
Foolish comment no save your eye go clear to ba ya...
Nice one u have just given me foundation on how to start thanks
Wow! Nice one and mak a lot of sense.
Cocksucker
Ok
It is good to plan for the future now!
Rest is sweet after labour but, you need to plan for it.
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