HO W TO M E E T Y O U R D E A D LIN E S
PREPARING FOR RETIREMEN T PEACE OF MIND FOR YOUR GOLDEN YEARS
Be enthusiastic about your dreams. Have an active interest in your plans for retirement. your full potential. In this convenient booklet Daniel Chuunga, motivational
speaker and pastor, provides useful recommendations for preparing for retirement. Some of the issues presented are: • Decide when to retire
PREPARING FOR RETIREMENT
W
ith good planning, retirement can allow you the time and space to reach
• Save for retirement • Adjust your lifestyle • Consider your health The secret to successful retirement is sufficient preparation. Follow these principles to ensure peace of mind for your golden years! ISBN 978-0-9870195-4-7
PUBLISHING CO.
9 780987 019547
DANIEL CHUUNGA
Africa
DANIEL CHUUNGA
PREPARING FOR RETIREMENT Peace of mind for your golden years DANIEL CHUUNGA
Africa
PUBLISHING CO.
PREPARING FOR RETIREMENT – Peace of mind for your golden years Daniel Chuunga Copyright © 2012 Africa Publishing Company ALL RIGHTS RESERVED Africa Publishing Company PO Box 111, Somerset Mall, 7137, South Africa Tel: +27 (0)21 8527656 Cell: +27 (0)83 5704585 Fax: +27 (0)86 5022980 Email: info@africacopublishing.com Unless otherwise marked, Scripture taken from the Holy Bible, NEW INTERNATIONAL VERSION®. Copyright © 1973, 1978, 1984 by Biblica, Inc. All rights reserved worldwide. Used by permission. Full or partial reproduction by any form or by any means whatsoever is prohibited. The violation of copyright is a crime. ISBN: 978-0-9870195-4-7 Publisher: Marcos Cruz Editor: Cindy Hurlow Published in South Africa Notice: The publisher offers this book to the public in the hope that it will provide information and guidance to the benefit of the reader. However, the reader should keep in mind the role of professional advisors who are authorized to analyse clients’ individual circumstances and are qualified to provide the best possible advice in each case. The publisher declines all responsibility should a problem occur from the reader’s use of this book.
CONTENTS Introduction
3
Know your retirement benefits
21
Decide when to retire
5
Consult financial experts
23
Decide where to settle
7
Have the relevant documents
25
Prepare now!
9
Adjust your lifestyle
27
Plan to build a house
13
Give yourself a salary
31
Save for retirement
15
Consider your health
33
Think of an alternative income
17
Conclusion
35
RETIR 2
EMEN
T
INTRODUCTION A
re you ready for retirement? The word “retirement” is not always a welcome word to those nearing their apparent “golden years” – many people dread reaching the age of retirement. Yet it is a challenge almost everyone will have to face. Retirement is the point in time when a person stops working entirely. This usually happens upon reaching a determined age, when physical limitations often no longer allow a person to work – as a result of illness, accident, or even through personal choice. Retirement age varies from country to country, but generally takes place between the ages of 55 and 70. In some countries, the age at which a person retires differs for males and females. Sometimes jobs that are considered dangerous, or that are exceptionally exhausting, have an earlier retirement age. Many scientists, lawyers, and other academic professors may work well into their 70s, whereas many actors, models, athletes and musicians work only until their 30s. Early retirement can take place at any age. But retiring early usually occurs before becoming eligible for support and funds from government or employer-provided sources. This means that those who retire early may initially need to rely on their savings and investments to support themselves. For many, retirement means no income, no benefits, no company house or vehicle and no incentives. It is for these reasons that many workers today fear retirement. Many retired individuals are cut off from their social contacts and as a result, experience feelings of isolation. Early mortality may even result due to the discontinuation of facilities that were previously enjoyed during a working career. However, to the wise, retirement can open new doors to a substantial income and a comfortable life. With good planning, retirement can elevate you to a higher standard of living and allow you the time and space to reach your full potential. 3
4
DECIDE WHEN TO RETIRE T
he key factor in preparing for retirement is to know when you are going to retire. Every organisation has a governing policy regarding retirement age. You need to know what the policy at your place of work is, to ensure sufficient planning. Depending on the demands of your job, you may work to full retirement or go on early or voluntary retirement. Once you know when you plan to retire, you can control your spending and keep your retirement settlement in mind. Try to know when you will receive your last salary because in some organisations you might not receive your retirement package on the exact day that you retire. Knowing this will help you plan how to use your salary to secure your future.
5
Yes
6
Deci
de No
DECIDE WHERE TO SETTLE A
s you plan your retirement, decide where you want to settle – whether in a town or in the countryside. While you are still employed, knowing the location you plan to retire to one day will help you to know what type of life to lead. The location will also determine the type of house you will need to build. Should you choose to relocate to the countryside, you may wish to situate yourself near available electricity. After being accustomed to electricity your entire life, getting used to none may be a shocking experience! Try to retire in a similar location to the one in which you spent most of your working life. A very different environment may negatively affect your health and well-being. Should you not have adequately prepared for retirement, it would be wise to reside in a place with a low cost of living. Be sure to consult your family about where to settle when you retire. This will help you to plan the type of house you will need, as well as the kind of life you should lead until then. It may be very challenging, should you be unsure about where to live after retirement. Therefore, deciding where to settle before you retire will give you direction and peace of mind.
7
RETIREMENT AHEAD 8
PREPARE NOW! B
egin to prepare now for retirement, and not ten years from now. Do your preparations now while you are still young and employed. Do not wait until you have your retirement package and then decide what to do – start now. Do not wait for a pay increase or for conditions at work to improve. Start now, so that you are not under any pressure when the time comes. You can never be too prepared for retirement. Now, while you still have the energy, is when you must plan for retirement. Develop a strategic plan for your life. Include objectives and a plan of action. Identify who you are and what you value most. Many people make the mistake of preparing for retirement when they have less than five years until they retire. It is prudent to prepare now because you may not even retire but be retrenched or even incapacitated. Finish school, and as soon as you get a job, start preparing for retirement. That way, when you get married, you will have the security of knowing you will retire gracefully and will be respected. There was an old man who could not be accepted into his brother’s home. This old man had never assisted his brother while he had been working. In the old man’s retirement, his brother could not afford to give him a piece of land to settle on. Even if you are a generous person, when you retire, very few relatives may accept you into their homes. They may not accept you because they know you no longer have a meaningful income. If you are married, it is vital to plan wisely for your family. Plan to have children 9
early. Children born to older parents might deplete resources for retirement in the form of school fees and the like. Put a strategic plan on paper and aim to reach your goals. Make sure your objectives are clear and within a time-frame. For example, your first objective could be: Finish building a house by 2012. Second objective: Complete a bookkeeping course through the University of South Africa by 2013. Third objective: Complete a poultry farming course by 2015. Living is not just about balancing on two legs; it is about living your dreams to the fullest, and about glorifying God each step of the way. Maintain self-discipline to achieve your objectives. It may be vital to plan but it is even more important to implement your plans. Do not plan without a deliberate intention to implement. Many plans remain on the drawing board. Make sure you execute your plans in order to put things into practice and achieve your desired goals. Some individuals acquire land but fail to build; some plan to go to school but fail to enrol; some make strategic plans but fail to execute them. Dreams are often impractical and remain in the mind – make sure yours are realised. Preparing for retirement is a real life challenge, and there is no denying that age and many years of working will catch up with you. As you prepare for retirement, endeavour to carry out thorough preparations to the best of your ability. It is far better to begin now than to wait for a bigger income. Be enthusiastic about your dreams. Have an active interest in your plans for retirement. Try to put a portion of your income into your retirement investments. When you are working, keep your retirement in mind and know that if you put money away, you will have peace of mind in your old age. Try to spend a portion of your salary on viable and fixed assets. You will not regret this – remember, developing your retirement security is a gradual process and cannot take place in a day. 11
HO W TO M E E T Y O U R D E A D LIN E S
PREPARING FOR RETIREMEN T PEACE OF MIND FOR YOUR GOLDEN YEARS
Be enthusiastic about your dreams. Have an active interest in your plans for retirement. your full potential. In this convenient booklet Daniel Chuunga, motivational
speaker and pastor, provides useful recommendations for preparing for retirement. Some of the issues presented are: • Decide when to retire
PREPARING FOR RETIREMENT
W
ith good planning, retirement can allow you the time and space to reach
• Save for retirement • Adjust your lifestyle • Consider your health The secret to successful retirement is sufficient preparation. Follow these principles to ensure peace of mind for your golden years! ISBN 978-0-9870195-4-7
PUBLISHING CO.
9 780987 019547
DANIEL CHUUNGA
Africa
DANIEL CHUUNGA