Re­tire­ment pit­falls to avoid

Daily Trust - - BUSINESS - By Fran­cis Arinze Iloani

Plan­ning for re­tire­ment in­volves avoid­ing both fi­nan­cial and psy­cho­log­i­cal pit­falls. Here are some re­tire­ment pit­falls to avoid:

Clear plan­ning for re­tire­ment is key to happy re­tire­ment. You must not be lost in what you in­tend to do af­ter re­tire­ment.

1. Lack of clar­ity: 2. Re­fusal change: to ac­cept

Re­tire­ment comes with changes which must be ac­cepted. Do not try to re­sist the changes. One of such changes comes in the form of ad­just­ments in your spend­ing habits.

3. Fail­ing to es­tab­lish a for­mal plan:

Re­tirees also of­ten fail to es­tab­lish a for­mal writ­ten re­tire­ment in­come plan. The plan should in­clude both a de­tailed bud­get and for­ward-look­ing sur­vival strate­gies.

4. Not re­ally down siz­ing:

If you fail to down size and keep liv­ing large as if you are still in ac­tive ser­vice, you are head­ing to­wards de­struc­tion.

5. Fail­ing to max­imise So­cial Se­cu­rity:

Although Nige­ria’s so­cial se­cu­rity sys­tem is mostly based on pen­sions. But it is im­por­tant for re­tirees to look out for states that of­fer free med­i­cal treat­ments and other re­tire­ment perks for se­nior cit­i­zens.

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