Retirement a Must (2)

From our last publication- Retirement a must (1) get it here. We broadened our views about retirement, pit falls and common errors. We will take a step further and look into some key concepts in retirement planning. They include:

Retirement Preparation Age: 

I recommend age Sixteen (16). I believe proper planning starts with the right information which the parents and guardians should give, this will serve as a foundation in the life of the individual and once this is properly laid to build on it will be easy. Most youths today do not know anything about retirement. I was speaking with a much younger colleague of mine at work and I had to practically explain everything about retirement to her. This is the age of information, we need to do some form of research on key subjects that affect us, especially things that are beyond today. What I have come to discover is we more often than not major on the minor things and minor on the major issues of life.

Retirement Age: Worldwide, retirement age is not fixed as its being moved upward, based on so many argument and good reasons. It is between 60 and 70 years of age, even more. But the widely accepted age is 65. So, other school of thought believe that we should retire early say between 40 and 60 years of age, their own argument is that you are able to enjoy the pleasure of your labor after such retirement. I quite agree with the two school of thought. But my own conclusion on retirement age is that it depends on each individual, it depends on what your resolve and life plan is about. As you read this blog what is your own retirement age. Some online sites have retirement calculator and I can recommend :  

http://www.ssa.gov/oact/progdata/nra.html,

 https://www.moneyadviceservice.org.uk/en/tools/pension-calculator 

http://www.armpension.com/index.php?option=com_content&view=article&id=23:tools-and-calculator&catid=16:resources&Itemid=130 . 

Out of the three you can use any of it.

Basic things to consider as part of  retirement plan:

Retirement Home, a place to live and enjoy the rest of your life, I will always recommend a quite environment away from the hustling and bustling of life so that you can have a lot of rest and peace of mind. This should not be a rented apartment as it will impact on your cost of living. I will also advice that you start making plans to build maybe in the inter lands as cost of land acquisition and building is cheaper. And since you are not retiring now you can let it out and let it serve as an investment tool for now.

Retirement Medical plan: This should be an integral part of your retirement plan, you must make sure you have proper plans for your health, it could be hiring the service of a live in Nurse, or subscribing to a medical plan with a Hospital or a Health management company. This is important as a lot of medical conditions becomes pronounced with age and therefore the need to be prepared.

Service of Domestic staffs: as we explained in the part 1 of this post that strength diminishes with age one must make proper plans to live long by employing hands to help out with house chores, driving and many other things, so that you can conserve your energy to taking care of grandchildren and vacations, and supervision. This employees may not be permanent staffs they may be part time basis as you deemed fit.

Provision of Food and Clothing: The need for balanced diet cannot be under estimated at old age and also the need for good cloths that fits into the seasons. Plans must be made for all of this.  

Provision for Educational trust fund: This may not apply to everybody, but for people that started raising families late. The more reason you need to marry early and not waste time.

In our next post we will go local by looking at the Retirement Savings in Nigeria. Stay on top of your finances as we move closer to achieving our personal finance goals! I am your personal finance coach Babatunde Ayorinde (Follow me on twitter @pistis03) and also recommend the blog to your friends.