Hardship and high cost of living have rendered most Nigerians restless and financially unstable in the last 10 years.
If you ask me, it hasn’t exactly been a banner year for the Nigeria’s economy.
Inflation has surged to a 15-year high this year, causing significant market instability and leading the Federal Reserve to increase interest rates several times.
Concerns about a potential recession, ongoing tensions from banditry which has made most farmers not produce and supply products, the lingering economic impacts of COVID-19, and other factors have prompted many individuals to rethink their retirement timelines.
Choosing the right time to retire is a significant decision, so it’s crucial to assess your emotional and financial readiness.
It’s also essential to prepare for the economic downturns you may encounter during your retirement, which could last 30 years or longer
If you still intend to retire at 55-60 years and wonder how your family will survive the hardship in the country, well, you can survive and even have more savings in your account.
Number one thing to do is to Revisit your values, vision, and goals.
Even prior to the pandemic, Nigerians began reevaluating their relationship with work. The phenomenon known as the “Great Resignation” (also referred to as the “Great Reshuffle,” “Great Rethink,” “Great Reimagination,” and “Great Retirement”) reflects a shift in attitudes regarding work-life balance and retirement.
A 2021 study by Savant and Absolute Engagement revealed that many individuals now prefer a “glide-path” approach to retirement, opting for a gradual transition into part-time or volunteer work before fully retiring.
Have your values changed? Do you still envision spending time in retirement the same way you originally planned? Now is the time to address any changes in your thinking and to shore up your vision of retirement. Will you be happiest if you continue to work, or are you still looking forward to traveling, hobbies, and other lifestyle changes you may have considered originally?
Number two is to Reevaluate your financial position and your ability to fund your ideal future.
Once you’ve taken the time to revisit your values, vision, and goals, it’s time to see how your financial picture dovetails with your updated retirement lifestyle plan. Your Savant advisor can help you assess how much income you’ll need to sustain your ideal future and help you stress-test your plan against inflation, a prolonged market downturn, and other factors that could have a financial impact on your long-term well-being. This is the time to think about “what-if” scenarios and come up with alternate paths to implement as needed.
Working with your advisor, you should adopt strategies that will help you transition successfully from full-time work to full-time retirement. Your plan should consider ways to minimize risk and the impact of taxes, while enabling you to take advantage of any opportunities that may arise.
3 – Reorient if needed.
If your values, vision, and goals have changed a lot from your original plan, you may need a new financial strategy to help ensure you have the resources you need in retirement. You may now have grandchildren in your life, health issues that could mean a greater need for medical care, or a new-found hobby that may require significant funds.
And although change is a constant, some people have already experienced profound changes in their lives since the start of COVID-19, including losing a job, having to spend more for healthcare, or supporting a loved one. If your income or investments haven’t kept up with your original plan, work with your advisor to get back on track.
If you’re thinking about retiring soon, take the time to thoroughly review your plan. Your long-term financial security relies on it.
