5 YEARS BEFORE RETIREMENT: No poor man is safe in old age
LUSAKA – Workers who are five years away from retirement have been urged to start making deliberate decisions on housing, location, income and purpose now, rather than waiting until their last day in formal employment.
Pension and retirement advisor Justin Kangwa says the five-year mark is the most important planning window because it gives people time to adjust without exposing themselves to too many shocks at once.
“If you have five years before you retire from formal employment, you must not wait until retirement to expose yourself to too many drastic changes or new demands,” Kangwa said.
Speaking on retirement preparedness, Kangwa outlined six key actions that should guide anyone approaching retirement.
The first is agreeing on where to live. He said families must have an open discussion early enough to avoid conflict later.
“If not yet done, you must discuss – with spouse and children, if any – and agree on where, place or town, you will settle,” Kangwa said. He noted that disagreement over location after retirement has broken many households, and that deciding early allows families to plan for schools, health services and community networks.
The second priority is owning a home. Kangwa advised those still in rented accommodation to take steps now to acquire residential property.
“If you are still staying in a rented house, find a way to acquire your own residential property by the time you retire. It is imprudent to wait until your retirement,” he said.
He explained that rental expenses continue after retirement, yet income usually drops, and most pension payouts are not designed to sustain long-term renting, especially in urban centers.
For workers whose preferred retirement location is outside their current town, Kangwa recommended relocating early, provided it is within a manageable distance.
“If the location of your preferred retirement house is not where you stay, but within 60 km radius, consider moving there now to begin to adjust to the new environment,” he said.
He said an early move helps retirees build relationships, understand local markets, and settle into health and social services before leaving formal work.
The fourth point is about staying active after employment. Kangwa said people should start testing a post-retirement occupation while still in a job.
“You must have started practising, sampling, your selected post-retirement occupation,” he said. “This can be an opportunity to keep your mind and body busy, give back to society, remain useful to yourself and the community, or indeed to leave a legacy.”
He cited examples such as small-scale farming, consulting, teaching, mentoring and running a small business. Starting early, he said, allows one to learn the trade, build a client base, and determine whether it can provide income after retirement.
The fifth area he highlighted is financial independence for dependants. Kangwa warned that continuing to support adult dependants indefinitely can undermine retirement security.
“Begin to empower, wean off, your perpetual dependants to stand on their own. In retirement, continued payment of Black Tax has potential to stress and condemn you to an early grave,” he said.
He advised using the five years to have honest conversations, support dependants with skills or capital, and set boundaries so that pension and savings are not drained by obligations that should have ended.
Finally, Kangwa said retirees need a renewed sense of purpose to stay mentally and physically healthy.
“FINALLY: You must have identified a new, renewed purpose for your retired life. Though retired, a fresh or rejuvenated goal will give you a reason to wake up every morning with enthusiasm,” he said.
He encouraged people to consider community service, faith work, mentorship or passion projects that provide meaning beyond a monthly salary.
Kangwa, who works with both public and private sector workers on pension planning, said many people underestimate the adjustment that retirement requires. He said waiting until retirement to make decisions on housing, location and income often leads to rushed choices and financial pressure.
“Retirement is not an event, it is a process,” Kangwa said. “The five-year mark is your runway. Use it to test, to build, and to adjust.”
He added that employers, unions and financial institutions should also play a role by providing retirement education early and by offering products that help workers acquire housing and start small enterprises before they exit.
With pension delays common and medical costs rising with age, Kangwa said early planning reduces dependence on children and government support, and gives retirees more control over their lives.
“Plan now so that you retire to something, not from something,” he said.