Retirement: Are you really ready?
Retirement is inevitable.
Yet, how often do we think about it while building our careers?
For many, pensions and retirement planning are distant concepts, left to the State or deferred indefinitely.
But the truth is simple: the earlier you plan, the better your retirement will be.
Ask yourself this: when you retire, how much money will you need to live comfortably?
For younger workers, this question seems far away, even boring.
“Why think about retirement now?” you might ask.
But consider this: most of us could live 20, 25 or even 30 years beyond our working life.
Your pension isn’t about age – it’s about income.
As George Foreman once said, “The question isn’t at what age you want to retire; it is at what income.”
Sobering
In Ghana, the numbers are sobering. Out of every 100 people who reach 60, only two retire comfortably.
Twenty-three must continue working, and 75 depend on SSNIT, charity or relatives (Data Bank Public Education, 2016).
The average monthly SSNIT pension is set to increase to GH¢1,990.03 in 2025, up from GH¢1,776.81 in 2024, following a 12 per cent adjustment.
The minimum pension for 2026 will be GH¢409.52, while the highest-paid pensioner receives over GH¢213,991.47 monthly.
For most, the average is far below the retirement lifestyle they dream of.
Many dream of owning a home, travelling or accessing premium healthcare. Yet few plan for the funds needed to achieve these goals.
Waiting until retirement to save often leaves people scrambling, or worse, dependent on others.
How?
So, how do you start planning? Financial experts often suggest the 50/30/20 rule: allocate 50 per cent of income to essentials like rent and food, 30 per cent to discretionary spending, and 20 per cent to savings.
For retirement planning, 20 per cent savings is a practical benchmark—but your personal situation matters.
• High earners should aim to save more than 20 per cent, controlling expenses to secure future comfort.
• Those earning less should focus on consistent contributions, even if 20 per cent isn’t immediately possible.
Every bit counts beyond statutory pension contributions.
Pension planning isn’t just about saving – it’s about investing wisely to ensure your retirement income sustains your desired lifestyle.
Relying solely on SSNIT or employer schemes may leave you unprepared.
Experience
Let me share an experience.
A few years ago, I accompanied a cousin to the bank to collect his student loan.
Standing in line was a pensioner, likely in his seventies, waiting for his monthly pension.
My cousin, trying to be playful, said in Twi, “Agya, wo abuka”, to wit, “Sir, you’ve cashed in”.
The old man turned on him with a glare that could melt steel, his words dripping with disbelief and resentment.
To the rest of us, it looked like a harmless joke – but really, it was a reminder that for many retirees, “cashing in” barely covers the basics.
This should not be a source of fear – it should be a nudge.
Planning for your pension now, while you have time, ensures you won’t face that reality unprepared.
Consider your ideal retirement lifestyle and work backwards: what savings, investments and contributions will get you there?
Your future is up ahead, but the destination lies within your planning. Start today.
Save wisely. Invest consistently.
Let your retirement be a reward for the years you’ve worked, not a struggle.
May your planning today shape a secure, comfortable tomorrow.
The writer is Managing Partner,
NKAKA & Partners.
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