3 Reasons New Retirees Are Worse Than Retirees 5 Years Ago

      3 Reasons New Retirees Are Worse Than Retirees 5 Years Ago

      1. Going on retirement can be very traumatic for those who have not prepared for it.

      2. Even those who think they have prepared will definitely have a shock about their life going on pension this year and going forward.

      See also: Teachers Tier 2 Pension In Trouble Again After First Using It For 1T1L

      3. Comparatively, new retirees will be well worse off than those who retired about five (5) years ago. Below are three (3) reasons new retirees are drastically worse off.

      a. With inflation at a rate never seen in the 21st century, which is 40.4% currently, the implications are that, retiring a year later currently, as compared to those who retired a year ago, means that current retirees have lost about 40.4% of their lump sums pension to be paid to them as compared to those who retired earlier. With 40.4% of their value of pension being lost to inflation in a year, you can imagine when five (5) years inflation is factored into the calculation

      See also: G.E.S Occupational Pension Scheme (Pension lump contributions and claims, tier 2) Releases Scam Alert. [Beware and take caution]

      b. With the current impending financial haircut to pension funds in the country, the lump sums and even monthly pension will be greatly affected, leading to even less nominal pension being paid.

      c. Also instructive is the fact that people who retired a year or more ago had the chance to establish some form of business or enterprise for various purposes using their already meager pension lump sum. However, at the current levels of prices in the country, it will virtually be impossible for any new retirees to try establishing or starting any new venture.

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