By Brian Bongomin
One day you will retire. It is therefore time to understand what the reality of retirement will be for you. You won’t be going to work, you won’t have steady cash flow, no influence or at best, a reduced influence.
Your children cannot be your retirement investment. Don’t bank on your children’s support or the support of friends or relations. That’s a Big risk. Everyone has their own responsibilities. They won’t be able to help you that much. You will also risk lose your dignity and respect if you adopt a life of begging. Be ready to take care of yourself because retirement also means that you will lose the ability to generate an income.
Here’s what you need to consider when planning for retirement
Where shall you retire? Should you build or rent? My recommendation, build yourself a home. Don’t retire and start to rent a house or refuse to vacate government house. You will be at the mercy of your landlord at a time when your cash flow is not only reduced but unpredictable!
Who shall be your dependants? Will you have defendants by the time you retire? Ideally, your children should be above 18, and self-reliant by the time you retire. But life does not necessarily happen according to this plan. So, plan on how you be able to meet their needs during retirement?
Will you still be in the city? Some people may tell you not don’t retire and stay in the city, unless you can truly afford it. You can’t continue living in a big city after 60 with limited financial resources. The language and the hustle will be hard for you. Where possible, relocate to a less expensive area where your reduced take home (pension) can go further.
What will be your cash generating activities? Some ideas may include property which can be rented or converted into cash, shares that pay good dividends. Plant cash trees, rear goats, cultivate vegetables etc. Such activities will not only give you income but will also keep you healthy.
Always pursue opportunities of self-improvement. Whatever you do during your free time, is what you will be doing when you retire. If all you do is to sleep or watch TV, then that’s what you are likely do in your retirement. Watching TV will not save you heartache in retirement. Learn a trade or a skill during your free time. It will come handy. Don’t spend it sleeping, Gossiping, watching TV! Same goes for your weekends. Make them productive. You will thank yourself for spending your time productively.
Start a hobby early in your working days to take you along when you retire. Rearing chicken, farming or own a shop. Acquire marketable skills (not only paper certificates) etc. It is worth noting that many of retirees are not mentally prepared to retire, and hence face financial pressures which often leads into Depression, Hypertension or Diabetes as a result of worry, anxiety and uncertainty.
Keep your friends and social circles. You cannot teach an old dog a new trick. This is sure true about the ease of making new and lasting connections as you grow older. It will be great to have friends to socialize, exchange ideas and share fun times with.
Mr. Bongomin is the Manager Business Development & Operations, Enwealth Financial Services Limited. Email: bbongomin@enwealth.co.ug
