Imagine you’re in your 50s, sitting in your favourite chair on a quiet Tuesday morning. The phone isn’t ringing with work calls. There’s no traffic to beat, no deadlines to meet. Just you, a cup of tea, and the freedom to do whatever you want with your day. Now, here’s the million-dollar question: Can you afford this freedom? 

Retirement isn’t some distant idea reserved for “older people.” It is an inevitable stage of life. Many people spend decades working hard, earning, saving a little here and there, supporting family, and keeping up with day-to-day responsibilities. But surprisingly, very few stop to plan for what happens when the paychecks stop coming in.  

In Nigeria, retirement can be difficult for some due to the rising cost of living, unpredictable pension payouts, irregular income, and the reality of supporting extended family members. Add inflation and healthcare expenses, and it’s clear why financial independence in retirement has never been more important. But can you arrive there with peace of mind or constant financial anxiety? Let’s find out. 

What is retirement? 

Before we talk about retirement planning, let us first consider what retirement means.  

Retirement is the stage of life where you stop actively working for income. In Nigeria, this usually begins around the ages of 60-65. Instead of relying on salaries or daily hustle, you depend on savings, pensions, passive income, and investments you’ve built over time to fund your lifestyle. 

For some, it means a complete stop from formal work; for others, it’s a shift to part-time consulting or a passion project that earns a small income. The bottom line is that you have enough predictable income and reserves to cover living expenses, healthcare, and the occasional emergency without needing a full-time paycheck. 

What is retirement planning? 

Retirement planning involves preparing your finances today to ensure a comfortable life after retirement. It involves determining how much money you’ll need, identifying income sources (such as pensions, investments, and real estate), and developing a strategy to achieve financial stability after you’re no longer working. 

Retirement planning is important for several reasons: 

• Inflation constantly reduces the value of money. What ₦100,000 buys today may barely cover basics a few years from now. 
• Pension payouts can be unreliable. Employer pensions and government schemes can be helpful, but they are sometimes delayed, underfunded, or insufficient to meet actual expenses. 
• Healthcare costs tend to increase with age, and access to quality medical care can be expensive.  
• Family responsibilities: Many Nigerians support extended family members, so your retirement plan must account for your needs and possible dependents. 

Without proper planning, the default is dependency on family, inconsistent pensions, or the shrinking purchasing power of cash. Conversely, with a plan, you buy options and the freedom to choose how you live later. 

When should you start planning for retirement? 

The best time is now, or as soon as you start earning. Whether you’re 21 with your first job or 35 with a growing business, the principle remains the same: earlier is always better. The earlier you start, the easier it becomes, thanks to compounding (i.e., the process where your money earns returns, and those returns also start earning returns over time).

But even if you’re older, it’s not too late. What matters is starting now, not waiting for the “perfect time.” Waiting increases pressure on your future self and reduces your options. 

Benefits of starting early 

Starting your retirement planning early creates advantages beyond the obvious benefit of having more time to save. They include the following: 

• Compounding growth: You can take full advantage of compound interest, as small amounts invested consistently can grow significantly over decades. 
• Less financial burden now: Starting early means you can hit the same retirement target with smaller, steadier contributions. You won’t have to scramble to save large sums at the last minute. 
• Emergency buffer: Retirement funds can double as an emergency fund. Emergencies can occur at any time, and a well-planned fund can cover unexpected expenses during crises. 
• Lifestyle freedom: Achieving your retirement goals early means you could even retire before age 65. This allows you to travel, switch to part-time work, or pursue passion projects while you’re still young enough to enjoy them fully. 
• Peace of mind: Knowing your future is secure reduces anxiety and lets you focus on living well today. 

Now that you understand the importance of planning early, let’s discuss how to prepare for retirement planning. 

Key factors to consider when planning for retirement in Nigeria 

A realistic plan accounts for these realities: 

• Inflation: Your savings must grow faster than inflation, or your purchasing power will shrink. 
• Healthcare costs: Factor in rising medical expenses and the possibility of long-term care needs. 
• Family and cultural obligations: Consider the financial expectations of dependents and extended family. 
• Longevity risk: This is the risk of outliving your savings. Imagine planning for 15 years of retirement income but living 25 years instead. Without preparation, your funds could run out midway. With life expectancy increasing, Nigerians must plan for 20–30 years of post-retirement life, not just a decade. 

Practical ways to start planning for retirement in Nigeria 

Here’s a step-by-step checklist you can act on today.

1. Set clear retirement goals

Decide the age you want to retire and the standard of living you expect. Some people envision a modest retirement where their basic needs are met and there’s no financial stress. Others want a more comfortable lifestyle that allows for travel, leisure, or assisting their children and grandchildren financially. Being clear about the life you want gives direction to your planning. Without this, it’s like setting out on a journey without knowing your destination.

2. Assess your current finances

Once you have a clear idea of your goals, take a realistic look at your current financial situation. This means taking stock of your income, monthly expenses, and any existing savings or pension contributions. This figure reveals how much you can realistically set aside each month and which financial issues you should take care of first (such as high-interest debt and unnecessary recurring costs). A realistic starting point makes the rest of your plan practical and achievable.

3. Calculate what you’ll need 

Estimate how much money you’ll require each month after you stop working and multiply by the years you expect to be retired. Consider your housing, food, utilities, transportation, healthcare, and family responsibilities. Then factor in inflation because costs will almost certainly rise by the time you retire.  

A helpful way to think about this is: If it costs ₦300,000 a month to live comfortably today, what will it cost in 15 or 20 years from now?  

This calculation provides a target to work towards, ensuring you don’t underestimate the amount you’ll need.

4. Develop a systematic savings and investment plan

Once you know your target, the question becomes: how will you get there? This is where savings and investments come in. Start by building an emergency fund covering 6-12 months of expenses in a high-yield savings account that is easily accessible. This prevents you from dipping into your retirement money when unexpected expenses arise. A good place to start is Flexible Savings (Wealth Box) on Zedcrest Wealth. 

You also need investments that will grow your money beyond savings. A good investment plan includes a mix of assets, such as mutual funds and fixed-income investments like treasury bills and bonds for stability, equities for growth, and dollar-denominated investments to protect against naira depreciation. Diversification spreads your risk and ensures steady growth. All of these options and more are available on the Zedcrest Wealth app.

5. Open a pension account for your retirement fund

A great way to plan for retirement is to have a pension account specifically designed to hold your retirement funds. Some employment contracts require you to have funds deducted from your salary, so consider whether having a pension fund administrator is something your employment covers. If possible, add consistent voluntary contributions to boost your retirement fund.

6. Review and adjust regularly

Retirement planning is not a “set it and forget it” process. Life changes, so your income or family responsibilities may increase. Regular reviews of your plan, at least once a year, help you track your progress and make adjustments as necessary. This could mean increasing your contributions, restructuring your investments, or updating your goals. This way, your retirement plan remains effective no matter how circumstances change. 

The Bottom Line? 

Retirement is inevitable, but starting early to plan makes all the difference. Even if you think it’s late, today is the best time to take action. 

Your retirement years should be about peace, freedom, and comfort, not financial struggle. That’s possible when you plan intentionally. 

With Zedcrest Wealth, you can invest smartly in diversified assets tailored for your retirement goals. Download the Zedcrest Wealth App today and take the first step toward financial freedom in retirement.