View retirement as well deserved dessert

NAIROBI: At a recent high performance leadership workshop I was conducting, I invited a guest speaker who has had a very illustrious career in the corporate world. Having served as the chief executive of regional giants, he chose to retire at the age of 53 to pursue his other interests. It is this point of opting to retire while at the peak that I wish us to talk about.

In an ideal world, retirement should be like dessert, a well-deserved treat following a lifetime of hard work. However, an increased average life expectancy and the unenviable example of some retirees has many workers feeling financially and even perhaps emotionally unprepared.

There is an unanticipated trend among our senior employed citizens that is amplifying this trepidation about retirement. Currently, there is a conflict brewing between judges and the Judicial Service Commission on whether the retirement age should be 70 or 74.

Whatever the merits or demerits of the case, the fact is that there seems to be a widespread intrinsic resistance to going into retirement. I doubt that the desire to continue to serve is the real motivation behind this resistance because logically, what can one accomplish in four years that they have been unable to in the 45 years since they were employed?

Paradoxically, among the younger generation, the value system has changed so much that many aspire to retire before 40. However, most of those I speak to have not put in place the mechanism to allow them to do so.

This is a far cry from the permanent and pensionable jobs my generation cherished. Government and parastatal jobs were prized, because that jobs remained yours until the day of retirement or death, whichever came first.

It seems retirement is something many of us are forced into, and if you are not ready, then retirement can become the most miserable part of your life.

While not everyone can afford to or wants to retire at 55, 60 or 70, there are a couple of things that seem to be universally on the minds of those nearing retirement.

RUNNING OUT OF MONEY

Anyone who has been formally employed will admit that the paycheck provides a sense of security and relief on every payday. Regardless of the deductions, you are still sure of something come month-end.

An assured salary for the ‘indefinite’ future is what is taken away from you when you retire. That guaranteed source of income is cut off and the possibility of running out of money becomes very real.

This is pretty much every retiree’s biggest worry. We do not usually work out just how much money we will actually need in retirement; that is because nobody knows how long they are likely to live. So we do not know if we should be planning financially for ten years of post-retirement life or 30.

Thus, outliving your money is part of many retirees’ nightmare.

LACK OF PURPOSE

Money is not the only reason people are afraid of retirement. I have heard stories of depressed retirees who, due to lack of mental stimulation, drift into late-life deviant behaviour such as alcoholism or some similar vice.

When you are gainfully employed, you are moving towards set goals every day. For many retirees, that is no longer the case. You have to come up with your own goals when you are retired, which is tough after living a structured life for 30-plus years.