“No way I’ll be in the trenches in my old age” – Kachi from United Capital Plc

May 30, 2022

When you hear the word “retirement”, what’s the first mental image that comes to your mind? Is it a picture of you sitting in front of your apartment with your nice round pouch that was once a six-pack, your hairline battling with the economy for the prize of ‘who has the faster recession’…or is it a picture of you sunbathing at a beach in Spain, enjoying hot granny summer?

I Can Almost Guarantee That This Is The Coolest Person Over 80

The truth is, both images would be accurate. There are a number of things that accompany old age like a starter pack: the back pain, asking your children to help you fetch the remote control even when it’s right in front of you, dozing off midway through the evening news, etc. However, like an alternative reality in the Marvel universe, our futures all unfold differently, and how you would be spending all that free time when you are older is entirely up to you. 

I, personally, subscribe to the soft life. Like a ‘philosopher’ once said, “anything wey I get now, na enjoyment, no worry about my future, I go worry about my future next year.” 

TechCabal Daily: 'Buy Kenyan, build Kenya' | TechCabal

Hilarious, but time has a way of running faster than a hawker in Lagos traffic, and before you know it, you have witnessed twelve World Cups, all your favourite songs now get played on Throwback Thursdays, and you find yourself at the mercy of the Pensions Board. Trust me, you don’t want to be 65 and relying on allowances from your kids. Once they get a new boo, it’s over for you dear. 

Common Ridiculous Reasons Why Your Parents Beat You As Kids - Kuulpeeps -  Ghana Campus News and Lifestyle Site by Students

So how do you plan for retirement, you might ask, you have to invest early and think long-term. As a young working-class Nigerian, you can prioritise your future by doing the following:

Keep an eye on your expenses

Nigerian GIFs - Get the best GIF on GIPHY

Not every time ‘Flenjo’, Sure enough, you deserve to treat yourself to the finer things, but it wouldn’t be a bad idea to celebrate your 70th birthday on a yacht now, would it? Wouldn’t it be nice to be able to host outdoor cookouts when you’re much older, while your grandchildren run around your compound? The money you invest today guarantees that you even have a compound for them to play in the future. 

Build an emergency fund 

WTF is an emergency fund and do I need one?!

You never know what would happen when you wake up to start the day’s grind: your generator’s rope could suddenly cut, your phone could fall into the water closet, or your favourite aunt could swallow a needle by accident. You need a savings cushion to be able to cater to eventualities, without having to take out of your long-term investments. A good rule of thumb is to have six months’ worth of your monthly tucked neatly in a savings account.

Let your money compound

Money GIF by Reactions | Gfycat

Take advantage of compound interest. Compound interest is interest you earn on interest. Let me explain – when you invest, you earn interest on that investment. Say you put N10,000 into an investment account that pays 10% interest per annum, you will earn N1,000 at the end of the year. By the start of the second year, your investing amount is now N11,000 and another 10% interest per annum will yield N1,100.

And just like that, your money begins to grow. Compound interest makes a significant difference over a long amount of time so it will pay you to start investing early and build an investing culture now. 

Stay ahead of inflation 

The Naira’s purchasing power is steadily declining. That’s why your university tuition was ten times what your parents had paid when they were younger. A 50kg bag of rice, which went for less than N8,000 in 2014, now goes for no less than N25,000.

Saving is nice, but simply dumping money into your account is just like running backwards. With all those hidden charges, you may never leave the trenches. To beat inflation, you need to invest at a rate that exceeds the rate of inflation. You need to invest in instruments such as mutual funds and stocks; foreign-denominated investments also hedge you from the volatile nature of the Naira.

Don’t put all your eggs in one basket

Varieties GIFs - Get the best GIF on GIPHY

Whether it comes to daily hustles, job search or even dating, it’s always better to have other options you can fall back on when life displays what it does best: unpredictability. The same goes for your finances: you don’t want to tie your entire financial future to a single investment. When it comes to investing, it’s a lot better to adopt an investment strategy that tries to spread your investments across different assets and asset classes. 

Products like Mutual Funds and Exchange Traded Funds offer inherent diversification benefits and save you the trouble of researching individual investments. You can also diversify across currencies by investing in dollar-denominated assets to protect against currency devaluation.

Whatever strategy you choose, staying consistent with your investments and retirement plans can help you develop excellent financial habits and work toward accumulating wealth for a prosperous retirement.

United Capital Asset Management provides top-of-the-line, tailor-made investment solutions for specific needs through our expertise in Portfolio/Fund Management, Mutual Funds, and Investment Advisory services, ultimately helping all our clients to achieve their financial goals.

With just N10,000 you can begin investing in a few of our mutual funds via our mobile investment platform, InvestNow. To get started, visit https://investnow.ng/ or download the InvestNow app on Google Play Store or iOS App Store.

Join The Conversation

Bring a friend.

You'll like this

May 31, 2022

In alignment with its ethos of engendering talent diversification, promoting creativity and enabling growth for the Small and Medium Enterprise sector in Nigeria, Leadway, the foremost financial services provider, will be sponsoring the fifth edition of the Lagos Leather Fair 2022, the biggest event dedicated to promoting leather in West Africa. The Lagos Leather Fair […]

June 10, 2022

Kerrygold Avantage is produced in a highly sustainable manner with premium quality Irish dairy which is tasty, nutritious, healthy, and mixes effortlessly into a delicious creamy milk, providing the essential nutrients for a healthy body. As part of activities celebrating World Milk Day, Kerrygold Avantage engaged consumers in a 3-day event, filled with exciting activities […]


Now on Zikoko

Recommended Quizzes

December 3, 2019

Are you a professional Yoruba demon? Are you walking around in search of whose life you can wreck at any given time? Well, this quiz knows exactly how many hearts you’ve shattered to date, and before you lie that your result is inaccurate, just remember that Zikoko is never wrong. Now, take it and be […]

November 22, 2019

It can be very stressful when you’re trying to find the love of your life, but you only keep meeting people that are exactly like your yeye ex. To help you be more aware of that problem, we’ve created a quiz that lets you know the kind of people you are attracting. Take it to […]

November 11, 2019

Today, we are going to be using your taste in music to determine how good you actually are in bed. All you need to do is create the ultimate Nigerian hit — from the lead artist to the producer — and we’ll tell you if all your partners leave satisfied, or if you are just […]

November 28, 2019

There are so many talented and stunning Nollywood actors that make it hard not to fall in love with them. So, while we all know the likelihood of us ending up with any of them is super low, it’s still fun to imagine a world where we actually stood a chance, and that’s why this […]

December 11, 2019

In the past month, we’ve made quizzes that guessed the last time you had sex, how many people you’ve slept with, and just how good you are in bed. For our latest attempt, we will use your taste in Nigerian music from the 2010s to ascertain what you’re like in bed. Take to find out:

More from Money

Doctor by Day, Nollywood Sweetheart by Night, How She Do Am?
January 31, 2023

Jemima Osunde is a 26-year-old physiotherapist and actress. Fed up with the chaos of medical school, she decided to pursue acting on the side. She called her big break pure luck, but through her story, we found out what it’s like to hustle as a newbie in Nollywood.

January 16, 2023

Did you hear how Chelsea swept in like a rich Nollywood sugar daddy and “hijacked” Mudryk from Arsenal? Mudryk chose money, and here’s why you should too.


Trending Videos

Zikoko Originals

September 13, 2022
Vs The World is a Zikoko original video series that follows best friends Astor and Hassan as they take on the world.
August 23, 2022
Zikoko Ships is a Zikoko Original series where we invite two people who share a relationship to play the Zikoko card games
December 14, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
November 2, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
October 26, 2020
A collection of videos documenting some of the events of the EndSARS protests.
June 22, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
June 22, 2020
Hacked is an interesting new series by Zikoko made up of fictional but hilarious chat conversations.
June 4, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
June 2, 2020
Quickie is a video series where everyone featured gets only one minute to rant, review or do absolutely anything.
May 14, 2020
Isolation Diary is a Zikoko series that showcases what isolation is like for one young Nigerian working from home due to the Coronavirus pandemic.

Z! Stacks

Here's a rabbit hole of stories to lose yourself in:

Zikoko amplifies African youth culture by curating and creating smart and joyful content for young Africans and the world.