Retirement is an inevitable part of life; however, many young people do not plan for it. Once one gets employment and starts earning an income, the focus is on satisfying immediate needs. Unfortunately, the needs keep on growing so one gets engrossed in spending with little regard to what will happen in the future.

If you want to retire and live in comfort, a retirement plan and commitment to saving are vital. People in their 20s, 30s or 40s are especially advised to start planning, saving and investing for retirement.
Rationale for retirement planning

In her 2020 article titled “Retirement Planning” Julia Kagan, defines retirement planning as the process of determining retirement income goals as well as strategies and actions to achieve those goals. It includes identifying sources of income, future expenses, implementing a savings programme and managing assets and risks. It is a life-long process which can be started any time. however, the earlier one starts the better.

Retirement planning helps one to assess his or her readiness to retire at a desired age and life style. It further provides an opportunity for one to identify actions to improve readiness to retire, acquire financial knowledge and encourage saving practices.

Although retirement planning is very important and makes life much easier during old age, to many young people especially those in their 20s and 30s, it is a very difficult task. However, it should be noted that time is an important ally when saving money.  The earlier a retirement plan is developed and implemented the easier it will be to meet its goals.

Make your retirement plan now

Regardless of your age, if you don’t have a retirement plan you should as a matter of urgency develop one. Your plan should be all round and cover your mental, physical, financial, social and spiritual needs during retirement. It should prepare you for a smooth transition from full time paid employment to home life. Your plan should include activities that will keep you productively engaged, and those that will enable you appreciate leisure as you moderate a work-life balance.

Developing a retirement plan is not different from developing any other plan. You have to start with the end in mind. What is it that you want to achieve? In essence what are the goals for your retirement plan? The goals should be developed along your mental, physical, financial, social and spiritual needs during retirement. This should be followed by identifying strategies and actions that will be needed to achieve them, necessary resources and timelines. As you develop the plan you should try to address the following;

• How will you keep mentally active? What will you do to remain physically fit?
• How much money will you need per month to cover all your needs without relying on hand outs?
• Which networks will you maintain and which new ones will you secure?
• How will you maintain your relationship with God?

Arthur Pinkasovitch, in his article “5 Key Retirement Planning Steps Everyone Should take,” tasks everyone to include an Estate plan and life insurance in their retirement plan. This will ensure that your assets are distributed in a manner of your choice and your loved ones will not experience financial hardship following your death. The Retirement Plan should be reviewed annually to ensure that you are keeping track of your savings.

Operationalize your Retirement Plan

When you develop an excellent retirement plan, do not lock it up in your drawers or abandon it on the shelf to gather dust. This is your guiding tool on how to prepare yourself to have an easier and enjoyable life in retirement. Once you have accurately estimated the income you will require to comfortably live on during your retirement you should start saving and investing wisely.

Membership to the Public Service Pension Scheme (for those in public service) or subscribing to NSSF and belonging to a company voluntary contribution scheme (for those in the private sector) may not raise sufficient income you will need during retirement.  In addition to your contributions to such schemes, you should consider investing in products and services that bring both short-term and long-term cash, like land, rentals, agroforestry, agriculture, money markets, fixed deposits and government bonds.

Your mental health is very important during retirement. Plan to engage in hobbies you are passionate about and to develop new interests to keep you engaged during your retirement to avoid depression and premature death. You should also plan how active you want to be when you reach retirement. Do you intend to engage in part time contract work, writing, gardening, or any other activities that don’t over stretch you?

Start living a healthy lifestyle now by being mindful of what you eat and drink as well as regularly exercising to keep fit. Include in your retirement plan how you intend to take care of your medical and wellness expenses.

When you retire you automatically disengage from many social networks. It is therefore important to carefully select the networks you would like to retain during retirement or to identify new ones you would wish to associate with. Only those that will be of value to you and where you will be adding value should be considered.

It is very interesting to note that as people approach old age they devote more time to GOD. You should therefore plan how you will improve or strengthen your relationship with your God during retirement.

Concluding tips

Retirement is a must for all of us regardless of what age you are now. Having a retirement plan is therefore a basic necessity and not a luxury. Do not spend extravagantly all that you are earning today. Make it a habit to save a manageable percentage of your income and invest it wisely. Do not wait to earn enough money to start saving because that day will never come. Saving is a culture that you have to inculcate in yourself. Even if you already belong to a scheme, that saving will not be enough to cover all your needs in retirement. If you want to live your retirement dream make your retirement plan now.