When we embark on a new job or receive a promotion, it’s natural to feel a sense of accomplishment and success. However, how long does this fleeting moment of satisfaction really last? While everyone around us celebrates our new position, we soon find ourselves contemplating job renewal and considering new offers just three years down the line. In our relentless pursuit of money, we often forget about saving for retirement, citing various expenses such as rent, school fees, and starting new businesses.
Human Resource officers have consistently emphasized the importance of saving for retirement from the moment we begin a new job. Mandatory saving schemes like the National Social Security Fund (NSSF) play a significant role in this regard. Depending on the organization we join, we may have the opportunity to sign up for additional retirement plans such as a company’s staff SACCO, Provident Fund, or Pension Fund. Although these schemes may seem appealing to newcomers, the idea of saving for the long term poses a challenge, as many of us desire immediate wealth rather than long-term financial security.
Over the past 15 months, I have undergone a mental shift, realizing the effort required to achieve the retirement lifestyle I desire. I envision being able to afford vacations in Diani Mombasa, owning property in the Seychelles, having apartment blocks in Uganda, and making significant contributions to the Uganda Revenue Authority through manufacturing and value addition. With these goals in mind, I am confident that I can secure a comfortable retirement income.
Realizing these dreams is not only desirable but also highly achievable in the long run. However, it will come at a cost. I have come to understand that I must start planning for retirement as early as today. This involves determining my time horizons, estimating future expenses, calculating after-tax returns (dependent on the chosen retirement scheme), and assessing my risk tolerance.
Fortunately, the National Water and Sewerage Corporation (NWSC) has not neglected the importance of retirement planning for its employees. They have implemented various retirement plans and packages, including direct benefit schemes based on years of service. Employees receive regular updates on their NSSF remittances, and the corporation now boasts a Savings SACCO (WASE) with 1349 active members and an undistributed surplus of UGX 90,186,094/- (source: WASE Annual Report, 2022). NWSC has also established a staff provident fund, ensuring that staff members can benefit upon exit.
Having learned about these retirement options available to me, I consider them as a benchmark to begin my own retirement planning and take advantage of the power of compounding. It is crucial to recognize that retirement plans evolve over the years, requiring registered portfolios to be rebalanced and estate plans to be updated as necessary.
Organizations that prioritize including employees in retirement planning have made significant strides in helping families prepare for the unproductive years that follow active work. These companies ensure that employees are well-informed about their career trajectories, family size, retirement age, and post-retirement goals.
As I conclude, I refuse to stop dreaming of the day when I raise a glass of champagne, expressing gratitude to my employer for providing avenues to help me plan for life after work. The prospect of a fulfilling retirement motivates me to take proactive steps towards securing my financial future, and I am grateful for the opportunity to do so.
