Thursday, February 25, 2021
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Columns Economics and Business Forum

Do you have any idea what your retirement needs will be?

by Thomas Chataghalala Munthali, PhD
16/02/2019
in Economics and Business Forum
2 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

Last week, I sat looking through the bedroom window of my house in Harare. I began to ask myself if I will be living the same comfortable life after I retire. You see, such reflection is important when you realise that a day will come when you will no longer be drawing a regular salary—retirement time. I proceed this week to look at the need to estimate your retirement needs. This will help you know how much (and through which vehicles) you should be investing now for the future.

The purpose of financial planning for retirement is simple—to ensure that you have a financially comfortable retirement. I have contended that one is rich if they can manage the same life style even when they are no longer on a regular salaried income.

RelatedHeadlines

Why do you have him for a friend?

Stop spoiling your children

Trust me, saving is not easy but very important

But remember, financial planning is not an exact science. You are dealing with uncertainties and will have to make various assumptions and estimates. These assumptions and estimates can be made based on reasonable and informed judgments about what may happen in future. As time passes and more information becomes available, you will change your assumptions and estimates and adjust your investment strategy to accommodate the changing environment.

The first step is to determine what you will need and want during retirement and what amount of income will sustain that lifestyle. One method is to prepare a detailed proposed budget of your living expenses during retirement. Consider such items as housing, food, clothing, transportation, insurance, leisure and recreation costs, medical expenses, and savings. You may want to analyse your current spending habits, and then identify which expenses would decrease during retirement (such as clothing and commuting costs) and which would increase (such as leisure and health costs). This is a good method for those who are fairly close to retirement, and who can therefore make fairly accurate budget assumptions.

An easier way to plan for retirement, particularly for those who are under 55 years of age, is to state your retirement income objective as a certain percentage of your pre-retirement income. Many retirees, according to systematic research, live on anything from 60 percent to 80 percent of their pre-retirement income. It’s usually better to plan at the high end of the income range to allow yourself flexibility should your investments not work out as you hoped.

A blessed weekend to you and yours as you give serious thought to the day you will not be on salaried or regular income. That day will surely come! n

Previous Post

MW-MOZ secure funding for power interconnection

Next Post

Achieving Vision 2020 through Tractorgate

Related Posts

Economics and Business Forum

Why do you have him for a friend?

February 8, 2020
Economics and Business Forum

Stop spoiling your children

November 17, 2018
Economics and Business Forum

Trust me, saving is not easy but very important

September 28, 2018
Next Post

Achieving Vision 2020 through Tractorgate

Opinions and Columns

My Thought

Malawi needs fixing, not politicking

February 21, 2021
Political Uncensored

No longer at ease..

February 21, 2021
Emily Mkamanga

Discipline paramount in government

February 21, 2021
People’s Tribunal

Let OPC be standard for everyone to follow

February 21, 2021

Trending Stories

  • Co-chaired the task force: Phuka (L) and Mwanamvekha

    K780M Dodma Covid-19 feast

    0 shares
    Share 0 Tweet 0
  • Bushiri’s daughters blocked from flying out

    0 shares
    Share 0 Tweet 0
  • Censorship Board acts on ‘Aunt Nellie’ videos

    0 shares
    Share 0 Tweet 0
  • Convention In July 2023—DPP

    0 shares
    Share 0 Tweet 0
  • Mathanga, kunje Sue president, MEC

    0 shares
    Share 0 Tweet 0
  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2021 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.