After 40yrs of age, plans for retirement becomes a big priority for so many people. My qestion is, how much does one really need to retire comfortably in Nigeria, regardless of your location or state of residence?

Donbrig:
After 40yrs of age, plans for retirement becomes a big priority for so many people. My qestion is, how much does one really need to retire comfortably in Nigeria, regardless of your location or state of residence?

oga, the answer to this question would break your heart because the vast majority of Nigerians cannot afford to save enough money to retire, if you're still determined to know the answer, then quote me.

Do we really ever retire? We only move from one work to another

Even dangote still dey fine money

We all know times are hard in Nigeria, but many Nigerians are still retiring after a successful career. Many Nigerians are still doing well, even though poverty is overrated in Nigeria.

mgbadike81:
oga, the answer to this question would break your heart because the vast majority of Nigerians cannot afford to save enough money to retire, if you're still determined to know the answer, then quote me.

You are partially right. Sometimes, retirement does not mean complete absent from work, it could mean working for yourself at your own schedule or doing what you like, it could be hobbies.

ogawisdom:
Do we really ever retire? We only move from one work to another

Donbrig:
You are partially right. Sometimes, retirement does not mean complete absent from work, it could mean working for yourself at your own schedule or doing what you like, it could be hobbies.

Retirement means accumulating enough assets that generate enough cashflow monthly to take care of your monthly expenses without you working.

If u still work to stay afloat financially then u have not retired. Whether u work for yourself or not u have not retired.

There is almost nothing like retirement for most Nigerians, we only move from one hustle to another till death do us part

Donbrig:
We all know times are hard in Nigeria, but many Nigerians are still retiring after a successful career. Many Nigerians are still doing well, even though poverty is overrated in Nigeria.

There are some common formulas used by personal finance planners but i wouldn't burden you with such calculations, so I'll use a simple approach for you.if you intend to retire at 65, estimate that you would need a million naira a year in retirement (just a little above 80k a month) and forsee yourself living upto 85 years (20 years in retirement) then you need 20 million naira by the date of your retirement. This approach ignored the influence of double digit inflation prevalent in Nigeria. A bag of local rice that use to cost #5,500 in 2015 is now 20k, which shows you how fast inflation eats up retirement savings in Nigeria, if you do the mathematics above while taking inflation into consideration, you might be needing more than 100 million in present day naira to survive for the next 20years while maintaining the same standard of living. Also consider that you might need significant healthcare costs and paid maid help in your old age. By next twenty years, many elderly Nigerians might resort to suicide due to old age poverty, ill health and lack of care.

ogawisdom:


Retirement means accumulating enough assets that generate enough cashflow monthly to take care of your monthly expenses without you working.

If u still work to stay afloat financially then u have not retired. Whether u work for yourself or not u have not retired.

There is almost nothing like retirement for most Nigerians, we only move from one hustle to another till death do us part

correct guy, you just said the truth as it is.

20 million should be good. But u need to have some rea lestates that u acquired over the years to supplement it

Retirement plan starts the very first day at work. Spend less, save and plan.

Daunting question.

Donbrig:
After 40yrs of age, plans for retirement becomes a big priority for so many people. My qestion is, how much does one really need to retire comfortably in Nigeria, regardless of your location or state of residence?

Take what you spend in one year, multiply it by 25. That's what you need to be financially independent/retired.

For me, my allocation for all the money I'm saving is:
- 30% real estate (especially rental property, or land, though no payments until you sell)
- 30% stocks (lately I've also been trying some farming cooperatives)
- 30% tbills
- 10% fixed deposits (some of which is also just plain cash balance in current account)

These should fetch you around 15% annually (some as rent, some as interest, some as dividends, while your property appreciates and your stocks grow), which adjusted for inflation (11% or so) gives you about 4% real growth. This allows you to withdraw enough money to live and still keep your principal.

This works for the Nigerian environment. Of course it helps to have your own house so you can remove rent from your expenses. I also advise not to build too big a house because someday your children will all move out and it will be big, expensive, and lonely. This is based on seeing the experience of my father's peers who complain about the large lonely house they're now in.

Note that 1/4% happens to be 25.

I learnt this 4% rule from multiple sources, including bogleheads.org
Try searching for "4% withdrawal rule" on Google.

Tbills and fixed deposits rise and fall with inflation; rent usually increases; and stocks can quadruple in a decade (and also lose), but you shouldn't panic because it will eventually regain lost ground. My grandfather's stocks - bought in 60's 70's 80's - are still paying dividends 2 decades after he died.

While you are working start acquiring real estate. That the only thing that will beat inflation. And generate continuous income at the time of retirement I work in the pension industry and my advice to most civil servant is to try and build many houses as possible, train your children in school and not look up to your pension money

Naija �� is growing more than you expect so you can't save some amount now and think it will be ok in the next 10yrs... So just invest after retirement and enjoy the income from it

Indeed no one is a victim of poverty.
With planning in place, coupled with sheer determination to succeed, Some Nigerians are now embracing the FIRE concept.
FINANCIAL INDEPENDENCE AND RETIRING EARLY.
Those that choose to be a victim of poverty will not see the possibility of this new croncept that is now gaining ground across nations, races and colors.

Ok

Happy Sunday and Good morning.

Just like asking how much you need to train a child? There are things that can't be calculated.

I’m enjoying this thread.

Hope to hear from those that are in actual retirement.

My story: I’m in early, but full, retirement from the USA. Luckily I built some overhead to my budget because Nigeria is actually fairly expensive.

Donbrig:
After 40yrs of age, plans for retirement becomes a big priority for so many people. My qestion is, how much does one really need to retire comfortably in Nigeria, regardless of your location or state of residence?

Billion Dollars

Once a thread hits the FrontPage, it would attract all sorts of stupid commenters, the moderators should try and enforce discipline, this same question on Qora or reddit would attract more intelligent answers because their moderators actually do their jobs.

Put investment in place that can give you steady income no matter how small e.g rent from shops, house, school, pure water biz etc.

That's how to retire without being tired

30-50 million naira will maintain a modest lifestyle

Due to inflation and uncertainty in future policies, it's best to not to just save a particular sum of money and hope to live off of it for the rest of one's life.

1) Invest in rented commercial properties and residential properties , also event halls.
(This is the most expensive on the list)
If by retirement you don't have a house but you have money, buy a plot of land below 1M, build a simple 2-3bd that will cost below 6M (nothing lavish)

2) Drop some money in a money markets account with one of the financial banks so it can yield 12-15% interest p.a

3) Get good health insurance plan cos sickness can empty all you save if you are not insured

4) Adopt a healthy lifestyle- worry less, be positive, eat healthy, sleep well, exercise often. What's the point of early retirement if you don't have the physical body to enjoy it

5) Buy an annuity plan from an insurance company or a programmed withdrawal plan from a pension fund company- let them worry about investing and maintaining the funds you invest with them.

6) Guide your kids to be financially responsible so that they wouldn't depend on you financially and won't be planning your early death

BUY THAT LAND NOW & WAIT, DON'T WAIT BEFORE U BUY THAT LAND..
Invest in real estates. My one cent

Cost of living in Nigeria is high and very unpredictable hence planning for retirement here is pretty difficult. Also our cultural practices also make it difficult to plan.

Overall the needs at the point of retirement should centre around access to good health facilities, basic needs like food, shelter, clothing etc but thid is not what obtains here so we even put undue stress on the retirement plan.

For I think if these basic amenities are met and there is some form of quasi activity for the retirees to keep them semi active instead of just staying at home then it's fine.

mgbadike81:
correct guy, you just said the truth as it is.

wisdom will not kill u