Dear Dorothy,
I am in my early forties and recently realised I have not given serious thought to retirement. I have always assumed I would sort it out later, but later seems to have arrived rather quickly.
I work full time, I have family responsibilities, and like most people, there is always something demanding my income. School fees, rent, extended family obligations, unexpected expenses. Saving often feels like a luxury.
I worry that I may have left it too late. I do not own property yet and my pension contributions are not impressive. I am anxious about becoming a burden to my children in the future.
Where do I even begin. How do I plan for retirement realistically without overwhelming myself.
Yours sincerely,
Grace
Dear Grace,
First, breathe. You are not late. You are aware. And awareness is a powerful starting point.
Retirement planning often feels intimidating because we imagine it requires a large lump sum and a perfect financial history. It does not. It requires clarity, consistency and time. You still have time.
Let us approach this calmly and practically.
1. Define what retirement means to you
Retirement is not simply stopping work. It is a season of life. Do you imagine yourself running a small business, consulting, travelling, volunteering or simply resting? Your vision determines your financial target. A modest, peaceful retirement requires a different plan from an adventurous one.
Write down what you would like your life to look like at sixty or sixty-five. Be specific.
2. Know your numbers
You cannot plan what you have not measured.
Find out exactly how much is in your pension account. Review your monthly expenses. Identify what you truly need to live comfortably. Once you know your present situation, you can make informed adjustments.
If possible, speak with a financial adviser who can help you project how much you will need and how much you should be setting aside monthly.
3. Strengthen your pension contributions
If you are enrolled in a workplace pension, consider increasing your contribution, even slightly. A small percentage increase now can make a significant difference over twenty years.
If you are self-employed or your contributions have been inconsistent, explore voluntary contributions or retirement savings plans available to you.
Consistency matters more than perfection.
4. Build additional income streams
Relying on one source of income in retirement can feel restrictive. Consider investments, property, dividend-yielding assets or even skills that can generate income later in life.
Many people in their forties use this season to build something that will serve them in their sixties.
5. Reduce debt strategically
Entering retirement with heavy debt is stressful. Create a plan to clear high-interest debts first. The less you owe, the less pressure you will feel later.
6. Protect your health
Retirement planning is not only about money. Medical expenses can drain savings quickly. Prioritise preventive healthcare, regular check-ups and healthy living now. A strong body is part of your retirement plan.
7. Release the guilt
It is understandable to fear becoming a burden to your children. However, planning from today already shifts that narrative. You are taking responsibility. That is commendable.
Many people wake up in their fifties with no plan at all. You are ahead simply because you are thinking about it now.
Start small. Automate savings. Increase contributions when your income rises. Review your plan annually. Adjust as needed.
Retirement is not built on one dramatic financial decision. It is built in steady, disciplined steps taken over the years.
And remember, security is not only about wealth. It is also about wisdom. You are already cultivating that.
Warm regards,
Dorothy