How And When To Prepare For Retirement In Nigeria


Retirement is something any worker looks up to some with fear, others with mixed feelings. But it should be something that is a kind of protection or security for future finances. In Nigeria pension reforms is still testing water although we have gone past where we used to be before. It used to take more than 2 years before retirees can get their gratuities and start collecting their pension money. But now it takes a year.

It is very important for you to start planning for retirement even in your first month of starting a job. Because it will make you live a less stressful life at old age. You can never be too young to be involved in this afterall, ‘a child of today is the adult of tomorrow’.

Do you know that the amount some retirees are getting as gratuity is nothing to write home about. How can you work for 35 years only to receive 7 million at the end of it all, what can that do for you. Especially, if you have not built before retiring.

This post covers how to prepare for retirement in 20’s, how to prepare for retirement in 30’s, how to prepare for retirement in 40’s, how to prepare for retirement in 50’s,and how to prepare for retirement at 60’s.

The earlier, the better some people wait until they are close to retirement age before the start making plans. It is very wrong because it could become very stressful for you and may reflect in your health.

How and when to start planning for retirement
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Retiring and getting something to fall back to, is very important and encouraging. Some people think retirement is for government workers, of course that is not true. It is for all sectors. As long as you are working whether private, public you will one day be fired, retired, retrenched or weak to continue.

In this case what will you do? I am a self employed and I know what to invest in that will serve as gratuity and pension for me when I am weak and old.

Retirement Age in Nigeria

Retirement age in Nigeria is 60 years or after 35 years in your service. But there are exceptions in some public sectors such as Educational sector which is 65 years of active service.

Retirement Savings Account (RSA)

Find out your employers retirement plans for his employees. According to Pension Reform act of 2014 every employer is mandated to make contributions from your salary to your retirement account. Ask to know if that is happening.

How to Plan for Your Future Retirement

Save money every month

Money is very difficult to save especially when your take home package is stipend. But you have to inconvenience yourself to save money no matter how difficult it seems. If you have not read this book, ‘the richest man in Babylon’ you have to do so. It will help you know on how to save money. Make sure you keep aside #1,000 every month for savings.

Cut Down on Expenses

Do not live extravagant lifestyle. You can give yourself a treat once in a while but do it with moderation. If you used to drink soft drink everyday you can reduce it to once or twice a week and save the other money.

Marry Early

Many pensioners today married quite late as such couldn’t meet up with family obligations after retirement. You can save yourself from this predicament by marrying early in your 20’s or at most early 30’s.

Train your Children

The best investment any man or woman should do is to invest well on their children’s education. You will not regret it in life when you invest in your children academics and good behavior. In future they become assets to you.

Determine A Business Idea

Determine the kind of business idea you will love to do. It should be something you have passion for. Start the business while you are still active so it would have grown and get established before you retire.

Business Plan

It is very important for you to have a business plan. So you can follow it up to the letter. Adjustments can be made as you advance.

Set Up a Business

It is advisable for you to have more than one stream of income especially in Nigeria of today. One source of income may not meet up with demands. Set up a viable business and pay people to run it for you while you keep an eye on the development.

If you are a Civil servant, work closes by 4pm while teachers close earlier. You can open your business after close of work. I know a woman who is a civil servant she opened a shoe business close to my sister’s provision store. She opens her shop after work every week days and early on Saturdays she didn’t bother to employ anyone.


Allow your money to grow to a reasonable amount before withdrawing. For me the best investment is property be it landed or building properties. I will build more of shops than residential. This is because store renting attracts higher money than residential. For instance a small one room shop could be #500,000 while a 3 bedroom flat could attract same amount. It is only an instance, the cost of rent depends on location so you see my reasons.

Attend Seminars

Whenever there is an opportunity or there is a seminar scheduled anyway, in regards to retirement please do well to attend. And make sure you implement what you are taught. Read books on retirement to get empowered.

Have Good Friends

Do yourself good by walking with people that have positive minds. People that have good plans for the future can influence you to start thinking or have better plans for the future as well.


The best time to prepare for retirement is now. Don’t wait until you are close to retirement. So the question of ‘when is the best time to
Prepare for retirement shouldn’t arise anymore after reading this post. You can read my post on jobs for the retired to chose from.



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