Planning our retirements is tough these days. In trying economic times, everyone is being more and more careful with their money. As a result, many people are not making adequate plan towards financial independence in their golden years. Just look at the statistics…
Out of 100 people that started work at age 25, by age 65…
- 1% are financially independent & wealthy
- 4% have enough money to meet basic needs
- 22% are still working (cannot afford to quit)
- 45% depend on family for survival
- 28% depend on state pensions, Social Security, friends or charity
But it shouldn’t be like this. Our retirements should be period of tranquillity and enjoyment, where we get to spend time with our families and enjoy the fruits of our labours. We shouldn’t have to worry about our own financial security and the legacy we are leaving behind.
We must plan carefully years in advance if we are to enjoy a rich and rewarding retirement. No one is going to bail us out. We have to look after ourselves
We need to have at least four basic plans that will enable us to take control of the future
- : Making the transition to retired life easy, so you can rest assured your finances are secure, your relationships happy and that you have all the time in the world to enjoy them
- It’s more essential than ever that you take care of your money, create multiple streams of income guaranteed to make you wealthy and financially independent in retirement
§ The Healthy and Fit for Life Plan: No-one stays young forever, but with the right diet, exercise and lifestyle anyone can enjoy a healthy body and mind during their retirement years
§ The Wisdom Plan: that will give you peace of mind in your golden years and sustain you spiritually This will make your twilight years blissful, equipping you with everything you need to leave a wonderful legacy for your family (including preparing a will) and nurture your loving, spiritual nature
Why is Retirement Planning Necessary?
The significance of retirement planning cannot be underestimated. Nobody likes to work forever and there comes a time in life when advanced age and natural limitations of body and mind prevent a person from working and earning.
Retirement planning entails making adequate provisions for the future –This also implies that you have adequate time and resources for activities that you could not fully enjoy during your prime years – travelling, spending more time with friends and family, joining a hobby class and being a part of community services. Naturally, indulging in such activities without having to report to work is possible only when you have adequate funds
Wealth building is probably the most important part of a retirement plan. Pensions are not enough and you need to ensure that there are adequate investments to yield you a good, steady passive income when you give up work.
Besides wealth building, you also need to think in terms of:
- Estate Planning
- Asset Protection
- Writing Your Will
- Leaving A Legacy
- Tax Planning
You cannot enjoy life to the fullest if you are not fit and healthy. You need to start from now by
- Eating differently – making healthier food choices
- Acting Differently – start exercising regularly
- Thinking differently – change your lifestyle choices
In addition to taking care of your finances, health and assets, you need to take care of your spiritual health, to be at peace with yourself, God and the world
Article by Bibi Apampa, Africa’s no1 Retirement Coach and Wealth strategist the creator of the best pre-retirement course in Nigeria at http://RetirementPlanNigeria.com