We know that retirement is an important topic, a topic that may seem very distant, but that is still important, much less real. If you’re in your 20s or 30s, or even 40s, we can always find that we have other responsibilities or obligations to cover, and we don’t put much thought into retirement. The human brain after all works by prioritizing the present and not the distant future. That is why all the more reason to plan for the future. This post guides you on how to save for retirement.


Start As Soon As Possible With Your Retirement Savings


Imagine that you just got out of the University and now it’s time to work. You begin to receive income, and of course you have to start paying your bills: rent, utilities, maybe if you have a student loan, you have to pay it off. As time goes by, new goals arise for which you also want to save: travel, continuing education, buying a property, getting married, having children, in short, commitments that change according to the stage of your life. All this is normal, but as we mentioned at the beginning, we must not forget our future “I”.

Daniel Gilbert gives us a substantial explanation of why this happens over time. That is, why we cannot imagine the future and why we do not give it importance now.



With that in mind, here’s how you can save for your future:


Start Early to Save for Your Retirement


It is very important to plan your retirement now. Remember, the earlier in life you do it, the more time you will have to accumulate and grow your savings. Naturally, if you’re in your 20s and still don’t have big obligations to other people (spouse, children, mortgage, etc.), you have more freedom to contribute to your retirement.


Choose the best savings method according to your needs


Not all workers and professionals have the same conditions. There are those who are listed in the Nigerian Pension System and have an agreement to which the companies where they work contribute. There are those who are independent and do not list with the PenCom. In either case, it’s important to save on your own. Because? Because, according to Stanbic IBTC, Nigerians only earn as much as 25% of their last salary in retirement. That is, to maintain or improve your current lifestyle, you must save.

The Nigeria Pension System, through Smepayroll, provides us with a calculator for both independents and those who are listed on PenCom. This way you can know  how much you have to save monthly to maintain your current lifestyle, and with which institution it is convenient for you to do so.


Make a savings plan


It’s recommended that you save at least 10% of your monthly income be allocated to your retirement savings. Now multiply all that for each month and for each year that you have left until your retirement. You can already see the potential, right?


Commit to your Future “Self”


And although as we mentioned at the beginning, as time goes by you acquire new responsibilities and obligations, remember that no one will support you like yourself. Commit to your future “I” and don’t stop saving monthly. If one month for some reason you cannot cover your savings, you can always request loans online so as not to miss out. Remember, even if it is seen as an obligation, your future “me” will thank you very much, especially since you will already be in a stage of rest from work.