Retirement Rehearsals

Most people talk about retirement as though it begins at 60. It does not. Retirement begins the day your income stops. That day may arrive at 60, but it may equally arrive at 55, 50, 45 or even tomorrow morning. Companies collapse. Governments change. Businesses fail. Illness strikes. Entire industries disappear. The real question is not when you intend to retire. The real question is whether you can survive if your salary disappears today.

One of the most dangerous habits among working people is assuming that future income will solve future problems. Year after year they postpone preparation. They upgrade lifestyles instead of building assets. They buy liabilities instead of investments. They spend their strongest years consuming what should have been funding their freedom. Then retirement approaches and reality arrives with frightening speed.

Every person above 50 should conduct what I call a retirement rehearsal. The exercise is simple. Assume no salary is coming next month. No allowances. No bonuses. No consultancy fees. Nothing. Can your investments carry you? Can your businesses pay your bills? Can your rental income sustain your household? Can your savings withstand inflation, medical emergencies and unexpected family obligations? If the answer is no, then your retirement plan is still a wish rather than a plan.

The purpose of the rehearsal is not to create fear. The purpose is to discover weaknesses while there is still time to correct them. At 50, you still have energy. You still have contacts. You still have credibility. You still have opportunities to learn, build and recover. By 60, those advantages begin to diminish. Energy is lower. Networks become smaller. Access reduces. Employers become less interested. Society becomes less forgiving of mistakes. Time becomes a luxury you no longer possess.

Retirement therefore demands preparation, testing and sacrifice. If your investments are inadequate, build them. If your savings are insufficient, increase them. If your skills are becoming obsolete, learn new ones. If your business depends entirely on your physical presence, redesign it. If your lifestyle cannot survive without a salary, reduce it. The earlier these adjustments are made, the greater the probability of a dignified retirement.

The future does not reward hope. It rewards preparation. One day your final salary will arrive. One day your final contract will end. One day your final promotion will be announced. Do not wait for that day to discover whether your plans work. Test them now. Rehearse retirement before retirement rehearses you. The consequences of getting it wrong are simply too expensive.

EDITOR’S NOTE: The author, Kwame Sowu Jnr, is a seasoned professional with a diverse background in business and leadership. He is a former Chairman of the Ghana Museums and Monuments Board. Kwame is a hospitality investor with thriving businesses across the regions.