Planning for retirement is a problem that plagues many men and women in Nigeria, due to the lack of financial security to secure a comfortable lifestyle after working for decades and exiting the workspace. However, here are some tips to help you secure your financial life post-retirement
Set goals
It is important to set retirement goals by determining your lifestyle and financial needs even before retirement. Outline things like where you would love to travel to, healthcare expenses, hobbies and other personal goals.
Assess current financial status
Be sure to assess your current financial status. Check if your income, savings, investments and assets can build your desired retirement life, and know how much you need to save for retirement.
Invest wisely
To have enough to enjoy retirement with, you must invest enough to carry you through that time. Be sure to make great investments before retirement.
Create a budget
Create a retirement budget by writing down your expected expenses during retirement, including housing, utilities, food, and even travel, entertainment, healthcare costs and miscellaneous. Most importantly, ensure you stick to the budget.
Know your retirement income
It is also important to know and estimate your retirement income sources, such as your pension, annuities, retirement accounts, stocks, shares and bonds.
Save
Make sure to regularly contribute to your retirement accounts. You can also consider diversifying investments based on risk tolerance and retirement timeline. You should also ensure you utilise employer contributions.
Manage debt
It is essential to manage debts and loans effectively. Make sure you pay off high-interest loans before retirement to reduce financial burdens.
Healthcare
Plan for your health during retirement. Understand healthcare options and costs post-retirement, and account for your healthcare expenses in your retirement budget. Also, evaluate long-term care insurance options to protect against high costs associated with medical and personal care needs in old age.
Constantly review
You must review and make adjustments to your retirement plans when necessary, especially based on changes in income, expenses or investment performances.
Consult expert
It is wise to consult a financial expert to advise you on the plans, and how to develop a comprehensive retirement plan.
