Managing Pension in a distressed Economy-Odunze Reginald

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And as Rich day will say “an individual’s reality is the boundary between faith and self confidence, and a person’s financial reality will not clear until he or she go beyond the fears and doubts of his or her own self imposed limits.

In article captioned  “4 dangerous assumptions that could hurt retirement plan” ,which appeared in Morning star,  Christine Benz noted that  ”Continued portfolio contributions, delayed withdrawals, and delayed Social Security filing can all greatly enhance a retirement portfolio's sustainability. Given those considerations, as well as the ebbing away of pensions, increasing longevity, and the fact that the financial crisis did a number on many pre-retirees' portfolios, it should come as no surprise that older adults are pushing back their planned retirement dates. Whereas just 11% of individuals surveyed in the 1991 Employee Benefit Research Institute's Retirement Confidence Survey said they planned to retire after age 65, that percentage had tripled--to 33%--in the 2014. In 1999, just 5% of EBRI's survey respondents said they planned to never retire, whereas 10% of the 2014 respondents said that.

Continuing Benz noted that “With that in mind, there appears to be a disconnect between pre-retirees' plans to delay retirement and whether they actually do. While a third of the workers in the 2014 survey said they planned to work past age 65, just 16% of retirees said they had retired post-age 65. And a much larger contingent of retirees--32%--retired between the ages of 60 and 64, even though just 18% of workers said they plan to retire that early.  The variance owes to health considerations (the worker's, his or her spouse's, or parents'), unemployment, or untenable physical demands of the job, among other factors.”

Therefore managing pension in a distressed economy has its challenges, issues and prospects, this is because in a depressed economy , all has been stretched to a point of utter helplessness, and there is that urge and genuine desire to make out the best out of that situation, to save for a rainy day.

Odunze noted in article titled Major key to successful retirement noted that “ On how many people fail during retirement, is a function of their ability to kick starting whatever they are used to even on a smaller scale during old age. Old age comes with it issues, problems, non  acceptance , health issues and  a disconnect with current happenings in life, there is also the generation gap, and so doing what you love most or whatever you have been doing most is the key to survival. So a retired policeman, or army officer can comfortable operate a security outfit and consultancy”

 

Odunze Reginald C is the Lead Consultant, Chareg Consulting.

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