Retirement planning

Retirement Planning

Retirement Planning

Retirement planning is financial strategies for saving, investment and ultimately distributing funds meant to sustain you when no longer in any gainful income activity. This includes setting your retirement goals, estimating the amount of money you will need, and investing to grow your retirement savings. This will be preparing today for your future life so that you continue to meet all your finance goals and dreams independently.

Retirement planning is crucial. Whatever your age is one day you will retire so it is important to ensure that you have a plan on what to do when you retire. You should ensure you have something that will generate income that will help you to maintain your lifestyle that you are used to when in employment.

Retirement is generally when you no longer need to work to live comfortably in time of life, and can rely on savings or passive forms of income to fund your lifestyle.

Retirement benefits

Retirement benefits are benefits payable to the member of the Pension or Provident fund scheme on attainment of retirement age or earlier withdrawal from service. The  retirement/gratuities funds are paid in lump sums or  periodic payment based on the initial set payment plan.

The following are the retirement planning benefits;

  1. Employer contributions towards any pension scheme are tax-deductible.
  2. Assets in the retirement plan grow tax-free.
  3. when you start early, it helps spread savings over extended period of time.
  4. Retirement Plan options are flexible.
  5. Help to do tax planning since any contribution to retirement scheme is tax free.
  6. Reduces high staff turn over. Retirement plans can attract and keep better employees, which reduces new employee training costs.
  7. Financial independence and peace of mind. The order you get the more apparent financial support becomes. With retirement planning you enjoy financial independence without compromising  your goals and dreams.
  8. security of Assets; Many people tend to sell their assets like properties if they retire without any savings. You can eliminate this by preparing yourself early enough thereby acquiring maximum benefits from retirement planning.

Importance of Planning for retirement early

Planning for retirement early means your saving will have more time to grow exponentially by taking advantage of compound interest earnings that is “make money on your money”

You also avoid debt in retirement since you will have build enough your savings cushion, which can help meet expenses in retirement

Finally planning for retirement will help secure a meaningful inheritance for your loved ones. The future of your defendants is secure even in your death.

Be the first to comment

Leave a Reply

Your email address will not be published.