Retirement is not about how much money you receive when you leave employment.
It is about how much sustainable income that money can generate for the rest of your life.
A retirement benefit is a lump sum. Retirement planning is a lifetime strategy.
A man retired after 32 years of working for the same organisation.
His retirement benefits were KES 18 million.
His colleagues celebrated him. His children were proud. He finally had time to travel, visit friends and enjoy life.
But six months later, something was wrong.
"I started preparing for retirement 10 years before I left employment. I didn't just plan for the money. I planned for the lifestyle."
That conversation changed his perspective.
He realised something many employees discover too late:
He had started borrowing money.
His monthly lifestyle required approximately KES 250,000. His retirement income was nowhere near that.
He had three children in university, a mortgage balance, medical expenses and a few family members who depended on him.
@moneyacademyKE 1. Bought my mother 1/4 an acre of land
2. Started my company giving me an extra income of atleast 50k monthly.
3. I got a better job, dream job
4. Bought my first dream car Benz
5. Got myself out of debt...silly debts like car loans and thieving mobile app loans
6. Many more