Monday, December 23, 2024

Nearing Retirement at 60: A Pensioner’s Guide to Securing a Poverty-Proof Future

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Mr. Ajani Samuel started working for the Lagos State Government as an information officer right after he finished university in January 1983.

He worked hard for 40 years in different departments, ministries, and agencies, and now he’s getting ready to retire.

As a young civil servant, Mr. Ajani saw many sad stories of people who retired and had to wait for their pension or do small jobs to survive. He shared his advice on planning for retirement with his team in his last meeting as a director.

Retirement Account

Mr. Ajani heard many tough stories and decided to prepare for his own retirement. Over 20 years ago, he opened a special savings account just for his retirement.

This account is different from his regular salary account.

In this retirement savings account, 20% of Mr. Ajani’s monthly salary went. As he got promoted in his job, his retirement money also grew.

You don’t need to work for the government like Mr. Ajani. Even if you work for a private company, you can still open a retirement savings account with any bank and make sure your employer deposits the agreed amount each month.

Investment

Mr. Ajani believed in the saying, “Don’t spend all your money.” Besides his retirement account, he also invested some of his salary in different businesses.

After doing some homework, Mr. Ajani invested in mutual funds with a commercial bank. When you invest in mutual funds, you give some money to the bank. The bank then does business with your money and the money of other investors. You get some profit based on how much you invested.

Debt-free

The economy can be tough, and sometimes you need to borrow money from friends or coworkers. Mr. Ajani was part of a cooperative and took a loan when he needed to finish building his house.

But he made sure to pay back all his loans and stayed debt-free. This way, he doesn’t need to use his pension to pay off debts.

Healthy Lifestyle

More than just money, Mr. Ajani knew it’s important to stay healthy so he could enjoy his retirement.

Years before his retirement, he stopped eating junk food like sodas and sausage rolls he often had in traffic on his way home from work.

He also made sure to get at least 7 hours of sleep every night, following advice he got during a health checkup.

Retirement Life

Mr. Ajani didn’t only plan what to do before he retired but also planned what to do after retiring, which many people forget to do.

He plans to join a retirees’ club near his home. This club meets three times a week for exercises. He also plans to start a small business with his savings so he won’t be bored.

Be like Mr. Ajani; retirement should be a time to enjoy, not a time to struggle.

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