It’s about that time when your folks have to readjust to a new phase in life- retirement. After several decades of working, it’s about time that they take a little rest. However, if care is not taken, that rest may not be so restful as financial worries can start creeping in. To prevent this, you could suggest some of these ideas to them.
- Moving to a city with lower living costs: While they have been used to the hustle and bustle associated with the costly cities, there is no better time to take a break from that scene and have a little calm in their lives. When you consider the added advantage of having the dame quality of life at a cheaper cost, it seems like a sure way for them to manage their retirement benefits.
- A little more thrift: No matter how much they earn in pensions and benefits, the truth is that without budgeting and planning, it is going to be difficult to sustain pre-retirement spending levels. Put into consideration the way prices have sky-rocketed over the past 18 months. If some adjustments to the budget is not made to accommodate these changes, they may end up burning all they have within a short time. It may be necessary to consider a few things that are luxuries but eat up a lot of funds. Definitely, they will need to manage their lending as well, as they cannot afford to place a large chunk of their money in the hands of others.
- Additional income: One way to never run out of money is to make more money. But then the concept of retirement and more money seem contradictory. But they are not. Retirees can consider putting their money into investments that can yield more funds for them. Despite the volatile nature of the Nigerian investment clime, there are still some sure-fire investments such as bonds and treasury bills that provide steady, if not mega incomes. These low-risk money-making avenues could do a lot to improve their revenue. In addition to these, they could consider opening a part-time consultancy in their area of specialization. This will be something that may not take much of their time and energy but can provide additional income for them.[Read Also: How to calculate interest on a money market fund investment]
- Invest safely: Old age is associated with increased wisdom and they will need it a lot at this stage. Risky investments like Ponzis, cryptocurrencies and the like should be avoided despite the lure of quick profits. Any high-risk, volatile investment should not come to thought at this stage. Similarly, it will not be a time to engage in any physically demanding ventures that may put their health in danger and increase medical bills.
- Don’t be a money-lender: Retirees are often very vulnerable to money parasites. These are people who are constantly looking for who to leech on for some form of financial support. Because they know you are kind and often gullible they come to you with all sort of pleas for money to invest in one thing or the other. You feel pity for them and to give yourself a false sense of comfort, you tell them “I am lending you oh”. Once money leaves your hand, it is no longer yours, so it is imported you avoid falling into this trap. Never lend money to anyone in your retirement.
Considering these 5 steps could make retirement a much more pleasant experience for your parents, and invariably for you.
Download Nairametrics App for breaking news and market intelligence.
This is the best post- retirement post about finance ever written. The retired in any part of the world need to read and live by these creed. Definitely more will still come from you to impact the world.