Plan early for retirement — Expert urges Ghanaian workers
By: Solomon Nartey Tetteh
Senior Finance and Economics Lecturer at the University of Ghana Business School (UGBS), Dr. Jabir Mohammed, has urged Ghanaian workers to make deliberate and consistent plans toward retirement to avoid financial struggles and premature death in their later years.
Speaking on the Business Breakfast Show on Zed 101.9FM, Dr. Mohammed emphasized that many Ghanaians fail to prepare adequately for life after work, leaving them vulnerable to poverty, stress, and poor living conditions.
He noted that Ghana’s life expectancy remains lower than that of many advanced countries, with a significant number of people not living past 70 years.
“If you are lucky, you may reach 75 or 80 years, but most Ghanaians die earlier, sometimes before they even retire,” he said, noting that stress from work, accommodation challenges, and financial insecurity contribute to this situation.
Dr. Mohammed highlighted that putting up a house often takes an average of 15 years for many people, meaning that retirees without secure accommodation face severe hardship.
He cited instances of retired public servants being forced out of government bungalows with nowhere to go.
According to him, the problem is worsened by low salaries and a pension structure that leaves most people living from hand to mouth.
“Without intentional savings and investments during one’s working years, retirement can quickly become a time of crisis,” he warned.
Dr. Mohammed advised that workers, regardless of their income level, should aim to save at least 40 percent of their earnings and channel those savings into viable investments.
“Even if you earn three thousand Ghana cedis, save close to 40 percent and invest in something sustainable while you are still in active service,” he stated.
Dr. Mohammed recommended investment in physical assets such as housing, which appreciates over time, although he acknowledged the rising cost of construction.
He emphasized that starting early and managing one’s finances wisely could make the difference between a comfortable and a difficult retirement.
“Plan deliberately for your retirement so that when the time comes, you can live with dignity and independence,” he added.
