Why retirement planning is essential; 9 vital points to consider – Paul Mante
The Managing Director of EDC Investments Limited, Paul Mante has shared insightful tips on how one can manage financial resources to their advantage and retire with a healthy bank balance.
In another edition on the Effective Living Series on Citi FM on Thursday, which centered on Retirement, Mr Mante shared nine tips on why it is essential to have a retirement plan during your working life.
Nine tips why it is important to plan for retirement;
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- Low Pension payment
- Easy for great retirement
- Longer life expectancy
- Escalating Health cost during retirement
- Less Energy to work
- Lack of Suitable job
- Unable to depend on your children
- Fragmentation of Family system
- Inflation.
Mr Mante also encouraged workers to build enough income generating assets and live off the returns and urged employers to take keen interest in the retirement plans of their staff.
The EDC boss advised workers to invest in treasury bills, treasury bonds, fixed deposits, real estate and collective investment schemes for better returns.
Mr Mante cautioned workers on some of the money mistakes to avoid during retirement.
According to him, you must not retire and be idle, or spend too much too soon during retirement. He warned workers not to commit retirement funds into capital investments and also avoid depending on one’s children during retirement.
He said living in huge mansions during retirement is one thing to be avoided since it will increase your maintenance cost. Another money mistake to avoid is having many cars or big engine cars during retirement.
Mr Mante implored workers to check their lifestyle and the things they eat to avoid what he calls the self-inflated huge medical bills during retirement, and also warned retirees to avoid high risk investments.
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The final money mistake he spoke about, is the failure to leave a will before death or dying interstate.
According to him the failure to leave a will before death is one of the causes of a lot of money problems for families, and advised that people should approach the issue of writing a will with an open mind.