As I reflected on a recent interview I had with a retired former executive as part of the retirement planning sessions we are facilitating for a local bank, I thought it would be good to bring this conversation to you, my fellow Zimbabweans!
Retiring unprepared in Zimbabwe isn’t just a financial failure; it is a moral and social tragedy. Most of us have seen men and women who once led boardrooms reduced to a state where they cannot afford a decent lifestyle.
In the last few months, I had a conversation with Annah (not her real name). She wasn’t lazy, and she wasn’t financially illiterate. She was a corporate executive who did everything by the book. For 33 years, she climbed the ladder, led departments, and made disciplined, consistent contributions to her pension fund. She trusted the system. Yet she now receives USD 100 as a monthly pension.
Think about that. This isn’t just a lifestyle adjustment; it’s an insult. If Annah was used to driving a comfortable car and living in a secure home, her pension today wouldn’t even cover one fuel tank for the car (at 2.10per litre)! Sadly, the retirement math is not comforting. Look at these figures and tell me how you plan to survive:
- Average monthly expenses: $502.53, assuming no vehicle or internet
- Average monthly expenses, including vehicle: $1,500 includes vehicle expenses, internet, and good medical aid
- Private sector pension monthly payout: $30 – $150 (it’s not a typing error)
The Blunt Truth: If you are a private-sector professional receiving a good pension of $150, you are still $352 short every single month just to be average. If you wanted to maintain your life style you would be 1,350 short. Where will that money come from?
What You Can Do Today. Not Someday. Today!
Retirement preparation doesn’t require a finance degree. It requires a decision.
Step 1: Know the real number. Find out what your current pension contributions will actually pay out. If the number makes you uncomfortable, good. That’s the point.
@Mustard Seed Advisory, we help you build a diversified, localized strategy that ensures you keep your dignity long after you leave work.
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