Welcome to another week of financial learning.

Today I want to touch on the retirement debate. For the benefit of emphasis, I will define retirement as the decision to partially or fully leave one’s job or profession.

I used the word decision advisedly. Retirement is well structured in the formal than the informal sector. The retirement age in Ghana for most people in the formal sector is 60 years and averagely between 65 to 75 years in the informal sector. Retirement is a topic many people do not want to hear whiles working. For some, the talk of retirement sends shocks down their spines due to their ill-preparedness towards it. Others also smile at the mention of it.

The retirement age in Ghana for most people in the formal sector is 60 years and averagely between 65 to 75 years in the informal sector.

I was reading some statistical reports on retirement last week and deem it necessary to share it today with the rest of the world;

1. Refinement Network in South Africa reports that almost 90% of South Africans spend more than they earn. They went on to add that close to 58% of South Africans expected to continue working for pay after the formal retirement mainly due to financial necessities than choice

2. Another report in America stated that one in three Americans had no retirement savings.

3. PNC Financial Services survey also reports that more than half of Americans are forced into early retirement due to health-related issues and loss of jobs. They further added that 61% of Americans had no retirement plan!

4.  A survey in Ghana also stressed the point that out of the almost 1.4 million people on retirement in Ghana, only 7% of them received a pension. The question is, how are the remaining 93% surviving?

5. Medical experts say that the older you become, the longer your prescription will be and the more money you will need to maintain your health.

The above stats are dangerous if not scary for the working class. One may be forced into early retirement due on health grounds or job losses as seen in the PNC survey. We can also go through the formal working life and retire one day.

But my question today is, how prepared are you for your imminent retirement?

Everyone needs to have a personal and financial plan for retirement.

Personal Plan: This will look at how you want to live your life when you retire. Where do you want to stay, what do you want to do, where do you want to travel, etc.

We need to sit down today and enlist all these retirement plans. The future is more uncertain than the present! So spend much time thinking about the future as you think about today. Some people say the future will care for itself hence, enjoying today and receive what comes in the future. This thought rubs your generation of the fruits of your labor.


Financial plan: The enlisted personal plan sets the tone for this retirement plan. Once you know what to do on retirement, the next stage is to start putting funds down today for that future. So if you plan on chilling on the shores of Barbados whiles on retirement, you will know how much you need to put aside now towards that dream.

Retirement is a time of chilling not hard work. Between the ages of 25 to 60 years is the hardworking period. Therefore, whiles you work hard now, start that financial commitment. The truth of the matter again is that relying solely on social security is risky. It will not be enough to make you live comfortably whiles on retirement.

Treat retirement as a separate financing entity on your personal budget schedule. You need to set up a retirement fund or scheme today. Visit any of the pension and finance houses today to inquire about their retirement packages.

Compare all before taking that decision. The bottom line is starting today not tomorrow or next month because your retirement is closer to you than you expected!


The sad part of this discussion is that many young people often say retirement is a later discussion as the future will think about itself. Some even add that I can die any moment from now so why should I start a futuristic scheme when I may never enjoy it! How about if you do not DIE?

You will not have the strength to work as you are doing today forever. Life will not always go as planned no matter the quantum of prayers we invest in it. Start envisaging that sweet retirement, traveling around and sitting on that cool beach. As you do that, take that bold step of signing onto a retirement scheme to make monthly contributions.

No matter your age now, you can start a plan. The story is even better if you are very young now! With a good retirement scheme, you can even decide to go on early retirement. Is it possible? YES, IT IS. It is all about taking action today after this write up. Procrastination is the thief of time hence take that action now!

Imagine contributing GHS 300 every month for the next 25 years in a retirement scheme? That is good returns along with what Social Security will add as a supplement. You can even decide to invest that bulk amount in Government treasury bills and enjoying its interest until your eventual death. I pray we all take that action today. You can send me a mail after reading this write up if you need directions or knowing about the credible financial companies with good retirement schemes.

I wish everyone a wonderful and memorable week!


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Patrick Baah is a chartered banker with over 5 years experience in main stream banking having worked in various capacities. He is currently at the Branch Manager Position of his institution. He has been a qualified member of the Chartered Institute of Bankers, Ghana with a good membership standing since the year 2013. He also holds EMBA and BA from Kwame Nkrumah University of Science, Technology, and the University of Ghana respectively. Patrick is the originator of the daily epistle dubbed “Savings Tip of the Day” which has been running for over a year on WhatsApp and Facebook. Patrick has also been teaching on the Topics Savings, Investment and Financial Independence for over 2 years and a research fellow for ILAPI Ghana. He runs a financial channel on Youtube by name “Patrick TV Gh” and has appeared a couple of times on the business segment of TV3 News 360. Patrick is into youth facilitation and counselling. I can be contacted via baasco2006@gmail.com and or 0243984492.



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