Retirement refers to the time of life when one permanently leaves the workforce behind. The traditional retirement age is 55 years in Zambia, many of which have some kind of national pension or benefits system in place to supplement retirees’ incomes. In this case in Zambia we have National Pension Scheme Authority (NAPSA), Public Service Pensions Fund (PSPF), but to mention a few.

The Redefined Definition of Retirement: This is an opportunity of transitioning to another work of life that will fulfill and satisfy your life needs.

In the simplest sense, retirement planning is the planning that one makes to be prepared for life after paid work ends (formal employment), not just financially but in all aspects of life. The non-financial aspects include lifestyle choices such as how to spend time in retirement, where to live, starting a new career in your retirement days, when to quit working altogether, etc. A holistic approach to retirement planning considers all these areas.

The emphasis that one puts on retirement planning changes throughout different life stages. Early in a person’s working life, retirement planning is about setting aside enough money for retirement. During the middle of your career, it might also include setting specific income or asset targets and taking steps to achieve them. Once you reach retirement age, you go from accumulating assets to what planners call the distribution phase. You’re no longer paying in; instead, your decades of saving are paying out.

Retirement planning determines retirement income goals and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, sizing up expenses, implementing a savings program, and managing assets and risk. Future cash flows are estimated to gauge whether the retirement income goal will be achieved.