What does your retirement plan look like?

Happy new month! Better late than never. Easter break is a few days away. I can't wait! Q1 ( Quarter one ) was one big roller coaster, I am glad and grateful for it nevertheless. Let's see what Q2 has to offer. Speaking of Q1 we resumed podcast recording already down two episodes. Have a listen HERE. We are also on Youtube growing the audience over there one step at a time.????????????

Earlier in March I run a campaign on Instagram on retirement planning. Yoh! The number of people who don't save for retirement was very alarming. The reality is we will all retire at one point in our lives. To make it worse retirement is not the responsibility of your employer! And guess what retirement will happen sooner than you expect it to. The sooner you start to think of how your retirement life will look the better. Time waits for no man. Simple questions to ask yourself are;

1. When do you want to retire?-Mmmh I haven't thought about this number yet! But I work with 60 years just because the Kenyan law says that.
2. Where do you want to retire and live?- I don't want to retire and live in Nairobi. At my big age, I am already tired of this city.
3. How will I pay for health care? Health care is very expensive in Kenya. I am in my early 30s and my medical premium is more than Kes 60,000 so imagine when I am 60.
4. How much should I have saved to retire comfortably- The reality is this number will not be adequate to sustain you upon retirement it just acts as a buffer! But the earlier you start saving for retirement the better.?

-Let's say I opened an Individual Pension plan account when I started working at the age of 23 years and contributed Kes 3000 monthly at a Guaranteed rate of 10% p.a upon the age of 60 years the fund would have generated a retirement income of? Kes 12.4M.

- In another scenario, let's say you learned about Individual pension Plan accounts at the age of 35 and decided it was time to start saving for your retirement income. You decide to contribute Kes 5000 each month at a Guaranteed rate of 10% p.a upon the age of 60 years the fund would have generated a retirement income of? Kes 6.1 M.

- With this said the earlier you start saving for retirement the better.?And it's never too late to start!

Retirement scares me because I wonder if I will be well prepared for it. I have written my retirement plan down and it's a work in progress a long-term goal that is always in my financial plan. While choosing a pension plan account always opt for one that guarantees you a rate of return that is higher than inflation- NSSF has already played us dirty?? don't let your IPP ( individual Pension plan Account ) do the same. This is a queue to check out what your IPP account offers you.

Lastly, retirement planning provides you with peace of mind Knowing that you have a plan in place for retirement can provide peace of mind and reduce stress. It allows you to focus on enjoying your retirement years rather than worrying about financial concerns. But if your Kids are your retirement plan then kudos to you!

If you haven't set up your retirement plan yet and need help, I am here to help, feel free to reach out to me ?. Remember Retirement is more of a transition and a journey that we all are in, and most importantly retirement is not the responsibility of your employer but your own responsibility!

Until the next one. Happy Easter and a prayerful Ramadhan period to my Muslim readers!

Draw up that Retirement Plan,

Lynet Kyalo??