By Amos Kambonde
Many people’s problems are directly or indirectly related to money therefore understanding retirement planning from the onset is crucial. Employers should normalise talking about money, investments, budgeting, taxes and other financial tools with their employees from the day of recruitment.
Normalise talking about retirement
Why should we normalise talking about retirement from the onset? Many times, employers leave it until the last days of going on retirement. As we age, our health declines, hence the importance of preparing our employees for retirement.
When employers delay engaging their employees about retirement, employees find it difficult to re-adjust their minds if the information related to financial planning is given very late. At this stage many employees have concluded their retirement plans.
Some employees might not have prioritised clearing their debts, acquiring shelter, buying movable assets while they are young, leaving it to a few months or days to retirement will give them more stress than retirement itself. Retirement is a journey, and retirement should not be seen as a destination, we need to walk this journey with our employees.
Don’t leave it for later
Employees want to assess their current financial position and establish their financial goals and budget accordingly while it is early. Employees yearn to retire to enjoy the much-needed freedom.
Many will appreciate the stress-free environment from the pressure to get up early to go to work, dropping kids off at school, or long traffic congestions, these can all be frustrating. When you retire, you get to do what you want at your own pace and not what others want you to do, this is the freedom we are talking
about, and this freedom can only be rewarding if we are better prepared from the beginning.
Normal retirement age in Namibia is set at the age of 60 for many pension, provident, and retirement annuity funds for all government employees/civil servants. However, for some employers their retirement age is prescribed by the rules of their pension, provident, and retirement annuity funds, which can still go up to the age of 65 or more.
Retirement should not be seen as the end of an era
Many people view retirement as the end of an era or life, but this is not how or what it is supposed to be. Retirement should be viewed as a new beginning, a fresh and a new chapter to revive, re-energise, and re-appreciate life.
The best motivation to retire are the positive dreams of the life you want in your retirement era. This often includes more time for traveling, pursuing hobbies, spending more time with family and friends, and taking steps to improve your health.
These are exciting times for retiring, if an employee is not mentally prepared for retirement, they might not be able to have enough time with family and friends, improve their health or travel the world, as their finances might not be enough, hence the importance of talking about retirement with employees as they enter employment.
Loving and enjoying retirement
Retirement allows people to move away from overnight at the office, the stress of compiling reports or even seeking permission from your boss just for a simple leave day.
There are lots of inner and emotional experiences ascribed to leaving your major connection to your office, colleagues, and the work environment. However, there are many more rewarding experiences when you face the new era of being a retired member of society.
That rewarding experience can only be worthwhile if your retirement planning started as early as possible. The goal is financial wellness, you mindfully manage your money, instead of your money managing you.”
Do you want to enjoy the hard-earned money you have been saving up during your working careers? If your answer to this question is yes, then certainly you need to start planning towards your retirement today.
Employers need a robust strategy aimed at preparing employees for free financial debt on retirement, hence the importance of employers to come up with financial literacy programmes that are aimed at educating employees about their finances as they enter the job market.
At the GIPF, we are ready to walk this extra mile with our participating employers in our quest to ensure that our members retire to a rewarding life of purpose.
*Amos Kambonde is Manager: Marketing Services at the GIPF
