Branch Manager of Databank, Tema, Abdul-Hakim Alhassan, has cautioned the youth and working-class generally to plan for things that they need or may need in life so that they do not go into retirement with debts.
Interviewed on Y107.9FM’s Myd-Morning Radio Show, he shared with the host, Rev. Erskine that a lot of people have the habit of buying things on credit and paying in instalments but this according to him, only leaves people with debts to settle even after retirement.
He, therefore, advised that the best thing would be to avoid such offers of buying on credit, although it is not easy, and instead make a plan to save as much money as is needed to buy the item.
“Try as much as possible not to carry debts into retirement. You want to buy a laptop, you take it on credit and pay in bits. You want to own a home, you do the same. Try as much as possible to plan towards these things so that you don’t take them into retirement.
Some people take a mortgage, they cross into retirement and they still have to pay for that mortgage in retirement. You should try as much as possible to have that financial plan so that you don’t take all these debts into retirement”, he cautioned.
Retirement planning is the process of determining retirement income goals, and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, sizing up expenses, implementing a savings program, and managing assets and risk.
By: Maureen Dedei Quaye