Many professionals not prepared for life after work, says retirement expert
PROFESSIONALS SUCH as medical doctors and lawyers are often considered among the top tier on the career pyramid, usually earning considerably more than the average worker.
Given their earning power and high level of education, many persons also perceive that as professionals, they invest wisely and are better prepared for life incidents such as retirement.
However, Sharon Smith, senior manager with responsibility for the JN Individual Retirement Scheme (JNRS) at JN Bank, says that in many instances, this is not the case.
Smith noted that many high-income professionals, including some doctors and lawyers, are regularly some of the least prepared for retirement.
“What we have seen over the years is that many professionals, including your typical doctor or lawyer, are focused on their specific area of competence; however, when it comes to finance and financial management, they are not literate at all. Therefore, they make decisions that are not in their best interest,” Smith said.
She pointed out that some doctors have developed the reputation of being spendthrifts.
“They earn large sums of money and figure that they will be able to work for a long time. However, professionals who engage in this type of spending don’t consider how hard it will be to maintain their lifestyle in retirement without saving,” she said.
Smith pointed out that one of the reasons some doctors are forced to work until death is because they are accustomed to making a certain amount of money, but they make no preparation for the day they will stop working.
She advised that this type of attitude towards finance and investment can create economic challenges later in life.
“Some don’t know about pension plans and many don’t set up one. And, generally, their lifestyle encourages consumption rather than investment. There are many cases of professionals who make substantial salaries but who do not put enough aside during the heyday of their career, and, therefore, encounter serious financial problems when they can no longer work,” she stated.
“If they stop working, they can’t pay their bills because many have nothing saved.”