Why You Should Save For Retirement

Every step you make in life counts, no matter how big or small it is, it will still count either positively or negatively, and the choice you make today will define who you will be tomorrow.

An American Author- Gordon Hinckley once said ‘’you can’t build a great building on a weak foundation, you must have a solid foundation if you’re going to have a strong superstructure.’’

Life is meant to be enjoyed not just endured. But as aforementioned, the choice you make now will determine whether you will live a life of felicity or distress. You may be wondering what you should do to enjoy your golden years. Well, financial stability is the only assurance that you will have an enjoyable future.

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Financial stability is not something that will happen overnight but is a journey that requires a lot of commitment, sacrifice, and knowledge, and can only be achieved through Saving. Speaking of saving, I mean ensuring your money is working for you not just piling it in the bank. Piling your money in the bank is just like burying it in the backyard, so ensure your money is multiplying. Consistent, dedicated saving might not be glamorous, but it will give you far more freedom and control over your lifestyle down the road.

If you are in your twenties, you have the best time to take care of your future since your retirement savings will have much time to grow. You may think that you have a very long way to go but the fact is the earlier you start saving for your retirement the better.

Anyone nearing retirement age will tell you the years slip by, and building a sizable nest egg becomes more difficult if you don’t start early. You’ll also probably acquire other expenses you may not have yet, such as a mortgage and a family.

Read Also: How To Get The Retirement Pension From TSC, Requirements And How To Check

Many Kenyans do not understand the importance of retirement planning. Some of the benefits include:

1. Peace Of Mind

One of the significant benefits of retirement planning that we usually ignore is the peace that comes with it. You will not be worried about any future financial turmoil as you step into the new phase of life. Neither will you be a bother to family and friends when you are finally old and not working. When you have retirement planning, you will have a sense of financial independence and freedom at that age without compromising your dreams.

2. Emergencies

Emergencies hitting along will not feel difficult to deal with since your savings will cushion you from the unplanned crisis. You may also want to help your loved ones in various areas such as helping in paying school fees for their kids, meaning they will be able to benefit from some of the money you have saved while ensuring that your own needs will be taken care of in your old age.

3. Early Retirement Option

The responsivities in life can make retiring seem like a bad idea. As such, one might continue working for the rest of their life to meet the living cost. But with the retirement plan at hand, retirement will seem like the best option. You may not want to wait until a certain age to retire from your job. Ones you are sure the plan will get you standing on your feet for the rest of the years, why not retire early and gain freedom and independence?

4. You can avoid debt

A person who retires without a financial plan may be burdened by uncountable debts. This is because it may be difficult to manage your daily needs on a reduced income. But the good news is this can be avoided if you start saving for retirement early on.

5. Inflation

Every day, the cost of living is becoming a little bit more expensive, and most people cannot sustain their lifestyle. It might not be easy to fulfill your life expectations in the future if you do not have a retirement plan. Retirement planning helps you consider this fact while making investment decisions to ensure you have enough.

Well, you cannot know what can go wrong in the future but you can control your financial stability with proper planning. However, it would help if you chose your retirement investments with care to secure your finances. You need a reliable partner who will help you grow your finances and maximize your retirement payout.

The National Social Security Fund (NSSF) is an excellent example of such an entity. This friendly service organization exists for the public good and offers social protection to all Kenyan workers, both in the formal and informal sectors.

Get started today with NSSF and have your money work for you. With NSSF, your money is safe. NSSF invests the members’ savings in secure, high-yielding investments such as government securities, real estate, and shared equities. This means that your money is always working and available when you need it.

One of the biggest reasons to save with NSSF is because it is the road to attaining your financial freedom. Of course, the next level of financial freedom is keeping your emergency fund intact while saving for other goals, like retirement, a home, vacations, or your child’s college costs.

Read Also: Retirement Is Inevitable, The Earlier You Prepare For It, The Better

Nevertheless, retirement should come first since you can’t borrow for it. Saving up through NSSF generally means having more money at your disposal when you stop working.

How to Get Started With NSSF

You can register with NSSF using the USSD *303# or by visiting the nearest NSSF office. Click Here for more information on member registration.

If you are an employer interested in registering yourself/your company with NSSF, please Click Here for more information on employer registration.

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