Retirement: It Starts Now.

Procrastination can pay for last-minute stock market deals or 11th-hour clearance sales. But when it comes to retirement savings? Bad idea. More than half of middle-class Nigerians say they plan to save more for retirement “later” to make up for not saving enough now. Worse is, according to research, about 30% are not saving at all. Don’t procrastinate when it comes to saving for retirement. Save early, save regularly, and save your tomorrow. Postponements can make a big difference in your final account balance.

Just imagine a 25 year old who saves N10,000 per month until he/she retires at 60. If my mathematics is correct (including interest rates), he/she will have accumulated more than 10Million naira. Now, wait until age 40 to start those contributions, and the balance would be about N3Million. The reason many do not bother saving at an early age is, they are currently earning just enough to survive, or they feel they would be able to catch up as their career/earnings grow. While the first category can be pardoned, but encouraged to keep something in the bank, no matter how small, the second category is doing it all wrong.

The future is oblivious to us all, hence it is advisable to prepare for it like things could get worse, while you work and hope it gets better. For those who feel they don’t have enough in their budget to save for retirement, it is highly beneficial to re-analyze your cash-flow and look for areas to cut back. It’s as simple as: “increase your income or decrease your expenses”. Even small amounts can add up over years of compounding. There’s a trick that has worked for many people: just assume you lost your current job and the new one pays you (X)% less than you’re currently earning. Save that (X)% and manage the rest.

One day, that retirement account might come in handy. No, handy is an understatement. That retirement account might just be your life-saver. One last thing: The more money you save, the more money you accumulate, the better your life will be after retirement. So, think today, take tomorrow, and insure your future.


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