We've heard about the 410(k) plan. It might not be applicable to us here in Nigeria because of the income status here ..a far cry from that obtainable in the USA. What should be the target of the average Nigerian?
How best do u think one should plan for retirement regardless of location?

Retirement? Funny!

Seun:

Retirement? Funny!

what is funny about retirement Seun? oh oh oh.......i see.......forget work. I am damn sure there are areas in your life you no go ever retire from hehehehehe.........

(I believe that) people should retire only when they are too old to work - that is, when they can no longer get out of bed in the morning. (If you really love your work you will never want to quit.)

Or else what you will effectively have is a country in which so many people are sitting on their bums in the name of retirement and depending on the young people who are working to provide all the goods and services that they need.

Anyway, it is funny for young pople to be looking forward to retirement already!

When has planning ahead become a joke?

I never knew Nairaland is a forum for young folks only. I just decided to broaden the spectrum to bring in the elders to the forum. A gesture that seem unappreciated.

If the USA's 401(k) was for elderly. I wonder when they'll save up to that figure.

layi:

When has planning ahead become a joke?

I never knew Nairaland is a forum for young folks only. I just decided to broaden the spectrum to bring in the elders to the forum. A gesture that seem unappreciated.

If the USA's 401(k) was for elderly. I wonder when they'll save up to that figure.

Layi my brother tell them oooo! the day they'll wake up with thier old bones crackling all over the place, trying hard to find a walking stick, stomachs growling with the pain of hunger and the thought that they have no savings to quench that then dem go know say life dey kenekene for dry season.....a word for the wise...

You should start planning for retirement now. I've been investing in a private pension plan since i was 26 (and thats not even early enough over here  ). Although the UK has a state pension scheme (i.e National insurance scheme), the government expects people to join a company run scheme or set up a private pension plan to supplement the state pension.

In addition to a pension plan, if you understand the stock market you can invest in shares and mutual funds or invest in property. The whole point is that you have something you can rely on when you can no longer work. In this day and age it would be foolhardy for anyone to expect that they will rely on their kids when they grow old.

There is a lot of sense in what Layi asked. Yes, retirement, as inappropriate as this may seem to some- including Seun- everybody needs to retire someday and the sooner you start thinking of how you will live your life when that time comes the better.

I'm yet to retire and I'm no where close to being retired, so don't get the wrong idea.  Anybody can make retirement exactly what they want- What I know for a fact is that retirement is not about sitting down doing nothing. That is a Naija man's style.

The main issue is to have the financial muscle to flex when you can't afford to work (because of old age). This is what Layi means and this is what retirement is all about-. Planning  for the future

Here in the US, it is not uncommon to find seniors- someone above 65 year, already retired- yet working menial jobs so they can pay for their medical and other bills. Majority of these folks weren't lazy or bums when younger, they most probably did not have a good plan in place to fund their retirement.

Can this scenario happen in Nigeria? Absolutely- just ask and look around you...

It's not been more than two months since I started earning enough to move out of my parent's place and now I have to start putting away money for retirement?

seun pm your number i need to have a word with admin!

Gosh!! Seun retirement doesn't mean u sit on your bum and do nothing, it means you have all the money you'll need so you don't have to work for money. You sure can still do things you love to do. And it sure ain't for oldies too. you can decide to retire at the age of 40!

Its better for youths of our generation to plan seriously towards our retirement so that we don't end up like the generation of our parents. where you'll hear stories of how they use to be rich in their youth, but rather than invest such wealth towards thier future, they blew everything on parties, cars,clothes, wives e.t.c. Now in their old age they have nothing and rely on thier kids to fend for them.

Please you guys shouldn't blame Seun. He's analysing the topic based on his situation. No one is too old to start a retirement or pension plan. Infact its better to start at the peak of one's productive years before it begins diminishing. It places less strain on one in the later years because you have funds to fall back on.

i dont seem to understand Seun's stance on this subject. you're never too young to start a retirement plan. even if u have to open an account just for that purpose and be depositing money in there little by little. thanks to Soludo's solution, our banks are now stronger. u could make it a savings account so u can gain interest on it and when u feel it has grown into something large enough, u could decide to move it into a fixed deposit account. that way u cant take anything out of it till the specified time. buying stocks/shares (be careful to invest in a good/strong company), real estate (if you've gotten to that level) is also another good way of planning for retirement; property always appreciates.

for christians that pay 10% of their earnings as tithe, u can also decide to save up another 10% for your future and live off the remaining 80%. it's easier said than done but with proper discipline, u can do it.

u can start with any amount and build from there. the best thing is to start while you're still young and even if you're not so young, it's never too late to start.

Even if I save 50% of my earnings for 50 years by the time I start spending it, it would not last more than 5 to 10 years because of the compound effect of our double-digit inflation.

But at least Seun u've got something to spend. Thats the whole essence of a plan.

Hello All,

There are many retirement plans offered by mostly Insurance companies in Naija.

I have one with IGI which i started about 5 years ago, and going to start one with GT Assurance.

www.igi-insurers.com
www.gtalimited.com


The returns on retirement largely depend on how much you can afford to invest monthly/quarterly/anually.


Personally, I am hoping to retire from work at 45, and be the governor of my state at 50.

Seun, oga, join a plan, no matter how small.

Cheers all.

Retire at 45? If we all retire at 45, who will provide the goods and services that we will want to buy with our saved money?

I think I will just invest as much money and effort as possible into my multiple businesses - I trust that better than any so-called retirement plan. Afterall the insurance company is just as likely to go out of business as my own company so why not just invest in mine?

Seun you still seem not to understand this concept of retirement. Retirement is not the way we Nigerians see it, it doesn't mean you stop being productive but only that you don't have to rely on any paid employment or even work at all to enjoy all you desire.

The investment you have is bringing enough return each year to meet your expenses. And that also means you are not spending the investment, but only the returns on the investment.

If at the age of even 40, you have reached that margin, then you are said to have retired. Retired from working for a living. Now you are just living, its your money doing the working.

Seun, Tu comprend?

Oga seun,

Na wa for u o. Babies are born everyday. By the time you are 45, there is another generation of younger people who are to produce those goods and services for you to pay for.

Otherwise you'd be like a true African leader: Sit Tight!

thanks @vinna

Retirement is of absolute necessity, because in our golden years, we wont have the strength, nor the will power to engage in manual labor as we once did during our younger years. And it will be unfortunate, to have to depend of meager entitlements from the government that would be barely enough to keep body and soul together. While 401K is an ideal route for retirement, let me sound this word of caution to all of you. If your company does not offer a match, you are better off, investing in a Roth IRA account, because with the latter, you are exposed to a wide range of mutual funds that you could invest with. The icing in the cake is that after the age of 59.5, you can withdraw the whole amount of money, tax free, unlike your investments in 401, which would be taxed by Uncle Sam.

Or better still, invest in both 401k and a Roth IRA, but it should not be a detriment to your day to day necessities.