When And How To Plan For Retirement?

There is a saying that the best time to plant a tree was thirty (30) years ago, and the next best time is now. That statement answers the first question of when should one start planning for their retirement. 

As a matter of fact, retirement planning should start even before one gets any gainful employment. Worst case scenario, your retirement planning must start as soon as you begin receiving regular income. That gives you ample time to put things in order before you retire. Some people usually wait until they are in their late forties before they start to think about life after retirement, which shouldn’t be the case.      

Research has shown that those who start planning their retirement earlier can maintain a decent living after retirement. 

Now that I have addressed the question of when, let me move to the how aspect of planning your retirement. There are different ways to do this. But in this article, I will talk about four ways.

1. Invest in different portfolios

One good way to help you plan for your retirement is to try different investment portfolios. Don’t put all your eggs in one basket, they say. The more you invest in the future, the easier life becomes for you after active service. However, it is important to seek the help of an expert because the investment terrain can be somewhat unpredictable. When investment is done well, it yields better results, which can be a reliever for you after retirement. 

Also, another helpful investment can be to sign up for an educational support scheme with a financial institution towards your children’s education. This helps you to avoid using your retirement benefit to pay for wards’ education. 

2. Start a building project

Another great way to plan for retirement is to start a project, and possibly complete it while you are still in active service. Sometimes people wait until they are almost due for retirement before they begin to put up their own house, which sometimes becomes difficult for them to complete. It is a mistake to stay in a rented apartment or state-owned property throughout your active service without thinking about starting your own. No matter how comfortable living there may be, the consequences are dire. In simple terms, don’t retire in someone else’s house. 

3. Start a business venture

Again, it is very important to start a business venture if you can while you still have the time. That will make life easy for you after retirement when you are possibly not receiving a monthly salary again. At that stage of your life, the proceeds of the business will become your anchor, and will help you maintain a good standard of living. Let me add that even if it means to take a loan from a financial institution to start that business, don’t be scared to take the risk. It is better to try and fail than not to try at all. 

4. Contribute with the SSNIT scheme

Last but not least, for my Ghanaian audience, contributing to the Social Security and National Insurance Trust (SSNIT) can be a way to keep a balanced life after retirement. Make sure while in active service, you contribute faithfully to the scheme. It can help you to complete a project you may have started or handle your medical expenses during your old age.   

As alluded to earlier, there may be many ways to plan for retirement, but if you carefully apply these principles enlisted in this article, you are on your way to having a befitting retirement. 

I would conclude by informing you that if you already have a business running that needs working capital, we are the best place to come to. 

Contact us: 0240061709

Follow SRF on Facebook, Twitter, Instagram, and LinkedIn for more.