A good plan for early retirement guarantees a stress-free life after quitting employment. FILE
By Isaiah Opiyo
In Summary
- Police vetting offers important lessons to workers as some officers opt out rather than face the panel.
The second session of the vetting exercise of
police officers has kicked off in earnest. Listening to the numerous
questions posed by the panellists during the sessions, it is evident
that the exercise is thorough and full of gravity.
With thousands of officers yet to undergo the
vetting, the number of those who would prefer early retirement to facing
the panel will grow to a significant figure. However, this may pose a
potential risk even to the police force.
Taking early retirement is not a bad idea.
However, the problem here is that up to this point many officers may not
have thought about or plan to retire early. The package may sound good,
but it takes time to adjust to the idea of sudden, early retirement.
The thought of early retirement is something that
many employees also grapple with. But in most cases, the decision to
take early retirement is not well thought out.
Whether you are a police officer who is yet to
meet the charged panel or a staff who is weary of work related stress,
before you face your employer with a decision to take an early
retirement, ask yourself an equally challenging question — one that’s
often overlooked — are you psychologically and financially ready to
retire early?
Early retirement is not as simple as it may appear
to many. Not only does it have the financial implication but also the
emotional or psychological component in it. These two factors have to be
considered in tow. Reasons?
It is certain that you may be financially prepared
but not emotionally ready for early retirement. This too causes some
stress during transition from a structured lifestyle of reporting to
work to unstructured one with no strict schedules.
Somewhat, many often have the feeling of being on
leave or vacation during early period of retirement. After time lapses,
the new lifestyle becomes painful and regrettable.
Conversely, you may be emotionally prepared but
not financially ready for early retirement. This perhaps is where most
officers opting for early retirement may fall. This again is no better.
The challenge is that one needs to be financially
prepared since you will be financing a longer retirement period beyond
the normal one. This will ultimately cause you emotional stress as you
think of how to safeguard your retirement nest from the risk outliving
your pension income.
But how do you ascertain that you are financially and emotionally ready to take early retirement?
Regardless of the situation that surrounds your
choice for early retirement, below are some of the few things you can
consider as you deliberate and make your preparation to retire early.
First, the choice for early retirement does not
mean that you retire from work but instead you move on to do something
else. This will help you both financially and emotionally.
Therefore, to ensure that you are in good
financial shape, retire to something else be in a business venture that
will generate you some additional income to bridge the deficit.
Getting something or a venture that does not only
generate you income but also keeps you engaged is imperative as it will
help you in the psychological transition into full retirement as well as
help one to meeting financial obligations such as paying unsettled
debts and support dependants.
Where this idea may not be viable, instead of
asking for early retirement, request for semi-retirement in which you
work part time or for some few months of the year as you make
psychological transition into full retirement.
Therefore, it is advisable for every employee to
prepare for early retirement regardless of age. Remember that retiring
early does not mean one is tired.
Mr Opiyo is a training manager & coach with Tolerance Employee Financial Advisors Ltd. isaiah.opiyo@toleranceadvisors.com.
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