The Tribune

Many employees are making the mistake of taking too long to prepare for retirement. After working diligently for more than 30 years you should set yourself up financially for your “golden years”. The last 12 months before you call an end to your career is especially critical to putting your retirement on a prosperous path. It is time to get your portfolio, healthcare and other finances in order so you can enjoy your new life. Here is short checklist of what each employee can do to prepare for the inevitable.

Raise cash. Your pay cheques are about to stop. Many persons look seriously at moving money otherwise invested into a savings or money market account to fund at least one year of expenses. Retirement time is not the best time to be financially poor and rich in investments. Ensure you have access to a certain amount of cash at all times.

Set a realistic retirement budget. There are a number of instruments financial planners use to help soon-to-be retirees list all of their fixed and discretionary expenses. This tool gives you a clearer understanding of how lavishly you can live for the length of time you expect to live post-retirement given the reduced income streams you will have remaining.

Play out social security scenarios. Bahamians need to be reminded that National Insurance Board (NIB) benefits are not designed to be the sole survival item in your retirement portfolio. The small assistance given is designed merely to supplement the four of five other savings and investments that should be working for you even now.

Figure out how you will pay for healthcare. Check if your company offers retirees medical, long-term care and other insurance coverage. Make up your mind regarding how you will maintain your healthcare coverage, which could easily be a sizeable chunk of your retirement budget. Research has proven that the single-most financially challenging expense for retirees is the cost of healthcare. This must not be taken lightly.

Manage your physical and emotional well-being. Realise that your health status is crucial as you prepare to exit the workplace. The removal from a fast-paced day may require a change in physical and mental activity. Staying fit, agile and active must become routine for the employee pre and post-retirement.

Create a strong social network. Work becomes more than our careers and earning a salary for many. For it represents the extended family. Separation from people we know, love and have experienced life with can be heart-wrenching. It is important that all pre-retirees find themselves in community, church and other civic groupings to rebuild social networks during the retirement transition.

Retirement planning is no longer something we can consider five years before it actually happens. This has, in many companies, become an onboarding orientation conversation. The longer we have to prepare, the larger the net we can build to ensure these years are comfortable and well lived. Happy planning.

NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@coralwave.com.