08/09/2026
Did you know that If you live to be a 100 years old, then your retirement will probably be almost as long as your working years… or even longer???
And what does that tell us?
It tells us that the best time to begin preparing for retirement is NOW that you are young. Planning for retirement is often raiser when retirement seems very far away.
Many of us postpone retirement planning because we feel “we still have time” but weren’t you just sweet 16 yesterday and you’re now 30+?
But one thing I want you to understand is that financial independence is not your ability to continue working. It is actually your ability to stop working and still maintain your lifestyle without hassle.
Besides, no one knows tomorrow. Your health may change, your business may change, the economy too may change and your ability to work could be affected.
The main matter is not if you intend to never stop working. It is actually is a question of “would I have a choice when the time comes?”
The benefit that young people have is TIME and a young person who starts planning for retirement in their 20s has the benefit of time compounding that a 50 year old does not have.
You don’t need to have plenty money to start preparing for retirement. The benefit of starting early is that you can begin with little contributions and do that over a long period of time while allowing your investment grow through the heavy lifting of compound interest.
You may be wondering; how can I start?
First things first:
Ask yourself; what kind of life do I want to live when I stop working?
How much does such a life currently cost?
Factor in inflation because it will affect the purchasing power of your money by the time you are due for retirement.
Next up, determine what type of income you anticipate to receive from your sources such as business, investments, rental income, pension, etc.
Then determine the GAP between what you currently earn and what you need to make to hit your goal for retirement.
Do you feel overwhelmed? 😅
This is why retirement planning isn’t just about a pension account — it is actually about building a financial ecosystem that supports you continually when you aren’t actively earning from your job or career. This is what I will refer to as FINANCIAL INFRASTRUCTURE.
Your financial infrastructure should consider long term investments, pension plans, insurance, emergency funds, and other assets that produce income for you. And the earlier you begin, the BETTER.
Imagine that a mother in her 30s starts an educational fund for her unborn child. This is part of financial infrastructure because when the child eventually needs to go the university, the mother will not need to squeeze out every last penny of hers to pay the fees.
Imagine a young person decides to invest 100k every month from age 25-35 (10 years) in a mutual fund at an annual interest rate of 12%, they would have invested a total of 12 million naira. If they stop and allow that money compound and never touch it for the next 25 years, by the time they are 60, the value of that fund will be approximately N360,000,000.
Now imagine that this same person decides to continue contributing 100k monthly consistently from 25 years till they are 60, they will have a portfolio worth roughly N650,000,000!!!!
(These figures are approximately what would be considered an estimated return if the annual rate of 12% doesn’t really change too drastically)
Retirement planning is less about the actual retiring than funding a non working lifestyle. Retirement planning should get to a point where working becomes a choice rather than a means of survival.
YOU ARE NOT TOO YOUNG TO PLAN FOR RETIREMENT.
Will you begin today?
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Love, Light and a sprinkle of Money in between 💜💡💸
The Money Mechanic 💰👩🔧
