The retirement journey (2): Basic principles for productive retirement

By John S. QUAISIE

Experts say that smart people plan for their retirement.  People who downplay the idea of retirement planning, wake up too late to find that their retirement is just around the corner.  Individuals who are serious about the planning process are more likely to make smooth and successful transition to retirement and live a fulfilled retirement life.

The following principles offer a pragmatic guide for the youthful and older generations.

• Write down your plans

It is important for us to write down our retirement plans.  Although written plans have no magic of their own, the fact that you devote time and effort to the process means that you are preparing yourself, at least psychologically, to face the challenges ahead.

• Mission statement

In the planning process, the individual’s concerned need to address the following critical questions relating to their vision and mission on the planet earth:

• Who am I?
• What is my purpose and mission on earth?
• What must I do to accomplish my mission successfully?
• What kind of legacy do I intend to leave for my family, community, nation and the world as a whole?

In the New Testament, the Apostle Peter addresses the above issue in an emphatic vision and mission statement,

“But you are a chosen people, a royal priesthood, a holy nation, God’s special possession, that you may declare the praises of Him who called you out of darkness into His marvellous light.”(I Peter 2:9 (NIV).

• Start saving now!

Successful or smart people learn how to save when they are young.  A young worker who cultivates the habit of saving money at the early stages, is able to build up a good investment for future use.  The perception of most workers in Africa is that they are paid less than they deserve.  It is common to hear excuses such as:

“My pay is not enough to meet my basic needs, so how can I save part of it?”

Whether this is a reality or not, we should not allow this perception to negatively affect our ability to develop and maintain a good savings culture.  For example, you can decide to save a percentage of your income every month.  Besides, you can use occasional or annual salary increases to boost your savings account.  Obviously, the savings will grow as your income increases with time.  It is better to sacrifice today for your future happiness.

• d) Avoid procrastination

One major problem, which many young people face is indulging in a game of procrastination.  They keep postponing actions they need to take today to mitigate future challenges. Many young men, influenced by peer pressure, spend too much money on fancy items and excessive entertainment.

When my family moved to our own residential accommodation, I met a young man working on his new building located a few minutes from our house.  I engaged him in a short conversation on his project.

He told me that he used to accompany his friends to drinking bars and other entertainment centres, to ‘enjoy themselves’.  In the course of time, he decided to discontinue this expensive and wasteful lifestyle.

He rather started saving money towards his future house. His friends were very surprised that he was no more going with them to the entertainment spots. He also did not tell them about his new project.

When he roofed his house and started working on the electrical and plumbing works, he decided to invite his colleagues to the project site.  It was quite a sight at the site. His friends were dumbfounded.  They enquired,

“How did you make it?”

It dawned on them that they had wasted a lot of precious resources, while their friend had made a wise decision.

Wise Sayings

Many wise sayings warn us of the negative tendency of postponing action on tasks that need to be attended to urgently.

“Procrastination is a thief of time.”

“Make hay while the sun shines.”

With regard to procrastination and laziness, King Solomon has a word of advice for us in Proverbs Chapter Six.

“A little sleep, a little slumber

A little folding of the hands to rest-

And poverty will come on you like a bandit and

Scarcity like an armed man.” (Proverbs 6:10-11, NIV Study Bible)

1. Join a Credit Union

In West African countries, the idea of credit union is not new.    One credit system which is well-known among the low-income earners in both rural and urban communities in Ghana, is what is popularly known as “susu”. With this system, individuals register voluntarily as members and make regular contributions towards eventual access to loan facilities, to address their critical needs.

In some work places, this credit system has been improved to a level where financial institutions, such as the banks, are entrusted with the investment and management of the funds.  This facility has enabled many people to access loans at very low interest rates, to address critical needs such as purchase of land, car or acquisition of housing accommodation.

• Supplementary Benefits

Some organizations have instituted a Provident Fund, to which both the employer and employee make financial contributions meant to address the latter’s future needs.  Other corporate entities also reward exiting staff, who have a record of long service, with end-of-service benefits. This is an ideal opportunity which employees could take advantage of, to improve their financial investment capital.

• Avoid compulsive buying

We must not be unduly influenced by the attractive radio, television and internet advertisements and develop the negative habit of buying items we do not really need.  Credit cards and online commerce must be used wisely, with a lot of caution.

We must also stop chasing after fashion.  There will always be more beautiful products – dresses, shoes etc – than what we currently have. There will also be new and more attractive car models, new and more powerful computers, new and more stylish mobile phones.

We certainly need to stop somewhere and re-arrange our priorities in life, to enable us address our real needs.  If care is not taken, compulsive buying can lead to serious indebtedness which could erode some very important savings that could have earned us better retirement money.  In addressing the issue of compulsive drive for self-gratification, we need to heed the advice of St Paul:

”…Godliness with contentment is great gain. For we brought nothing into the world, and we can take nothing out of it” (I Timothy 6:6-7 NIV).

With good planning, backed by serious commitment and discipline, retirees can navigate the problems and challenges associated with retirement and enjoy value-added pension life.

The writer is an HR/Management Practitioner

Phone/WhatsApp: 0244599628

E-mail: [email protected]

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