The retirement journey (3): Addressing critical areas of challenge

By John S. QUAISIE

Many people in small business enterprises and self-employed individuals tend to downplay the importance of planning their retirement life.  In their youthful and energetic days, they try to push the idea of retirement away from them.  Unfortunately, many of them realize too late, that they have made wrong choices, as they come face-to-face with serious psychological and socio-economic challenges in their old age.

On the other hand, their colleagues in the same age category, who made the right decisions and the needed investment, reposition themselves for an enjoyable pension life.

The private sector

In a great number of African countries, there are ideal opportunities available for all workers – public and private – to invest in social security and insurance schemes. Apart from Government provisions, there are many private insurance avenues which offer various pension packages for retirees.  Private workers who take advantage of the Government or private insurance provisions and invest in them, enjoy the benefits of their savings, when they retire from active service or are too weak to engage in normal professional work.

Time up

One day, I requested an experienced plumber, whom I have known for a long time, to carry out some repair works at our residence in Accra.  As I watched him at work, I noticed that he was having some challenges; he was working at a very slow pace.  In the course of the work, he turned to me and said,

“Brother John, I cannot handle this work. You must look for a young person to do it.”

In the past, he had carried out such repairs with ease, but now, as he advances in age – approaching the age of seventy – he realizes that he can no more handle the work, due to his age and physical condition.

Insurance cover

Elderly people who have come to this stage need social security and insurance provision to cover them, as they take a rest and relax at home or spend their time enjoying their favourite hobbies. Those who are adequately covered by a good pension scheme, enjoy the fruit of their labour; but for those without any insurance package, it could be a very serious problem.

Unfortunately, a lot of Africans who do their own private business or work on part-time basis, fail to invest in social security scheme.  Their common excuse is,

“I don’t earn enough money, so I can’t put anything aside for insurance purpose.”

The overseas factor

Some Africans are attracted by advertised overseas jobs which offer juicy salary and benefit packages, and travel abroad for employment. Many African footballers, who have spent several years overseas playing in well-known European clubs, may have some exciting stories to share with their families and friends back home, as they display their new lifestyle.

In many cases, the retirement benefits associated with such foreign jobs go a long way to reposition retirees at a higher level of economic benefit than their counterparts in their home countries.

However, the critical issue is being able to work for the required number of years to enable them access the foreign pension benefits.  Some foreign workers are unable to work long enough to qualify for the retirement benefits, due to unforeseen circumstances such as regional wars and conflicts.  In such cases, the individuals concerned experience serious loses in their investments.

Addressing critical needs

A few years ago, I met a university lecturer who had just returned from a foreign country.  While in Ghana, his home country, he had started contributing to the Social Security and National Insurance Trust (SSNIT) towards his future retirement.  When he relocated later to the host country to work there, he failed to invest in a local insurance scheme; and he also stopped contributing to the SSNIT in his home country Ghana.

Later, when he returned to Ghana, on retirement, he faced some serious financial challenges. He did not qualify for the SSNIT benefit, because he had failed to contribute to cover the required number of years.  At the time I met him (when he was approaching seventy years), he was looking for a loan to pay for his rented housing accommodation.

• For people who work abroad, it is important for them to contribute consistently to a pension scheme in their home country, in addition to whatever social security investment they make overseas. This would ensure that at the time of retirement, they would have a consistent and reliable financial support.

Who pays the bills?

Some individuals on retirement are dealing with family issues which disturb their limited pension packages.  Their gainfully-employed adult children who are staying with them in their homes, still operate with the concept of ‘business as usual’, when it comes to paying the domestic bills relating to housekeeping, gardening, waste collection and other utility services such as electricity and water.

These young adult employees expect their parents to address these bills with their pension benefits.  In most cases, it is not because the young people do not have enough resources to contribute to the payment of the bills; it is simply because their parents have always paid the bills since their childhood and they just find it normal to continue the tradition.

In such a situation, the parents have to engage their adult children in a constructive family conversation, and commit them to contribute to the payment of the domestic bills.  Parents must avoid the practice of pampering their children in their early life, and teach them to be more responsible, in order to prevent such cases of overdependence.

Enjoyable experience

The retirement time space must, as much as possible, be filled with good memories, constructive relationships and healthy living.  It should be a time when retirees are able to enjoy the benefits of their long years of hard work.  Considering the responsibilities and challenges that African retirees are often confronted with, there is a great need for all workers – both public and private – to plan early and reposition ourselves, strategically, to make the retirement life an enjoyable experience.

John is a HR/Management Practitioner

Phone/WhatsApp: 0244599628

E-mail: [email protected]

 

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