Tips on Saving Money for Retirement In Nigeria

Saving money can be a very daunting task. Each day we are faced with various wants and needs that require spending money. The goal of saving money for retirement is to have a backup that will be used after you retire and would be your source of income if you have a particular project at hand. Nevertheless, most people save for the fun of it, while others save for something important.

I attempted saving when I was just 19, but I ended up spending all the money recklessly. I later learnt how to save through the hard way when I had a pressing need to attend to and had no money. Trust me, it was hell lending from friends and so I decided that I must start saving which I did officially at 21.

Friends, the problem with money is that when you hold or have it you forget all what you planned to use the money to do. But when the money is not there, you could list a lot of things you could use money for. Therefore, it is always advisable to save generally (both for retirement and otherwise) because no one knows when a need or want shall arise.

Lack of saving causes one to be a constant debtor. It takes discipline, determination and sacrifice to save. Let’s face reality “Saving is never easy”, but once you can practice the techniques I shall highlight below, I see no reason why you cannot be a millionaire in the nearest future after your retirement.


  1. Have a clear plan and goal: Most people don’t know that before one saves or even plans to save, they do have a target or a need they want to fulfill. It is important that you have a clear set target on what you are saving for. So, if you have decided to save some money from your salary, you decide on what purpose to use the money for. You can also write down your target so as not to forget or better still as a reminder on your phone. Plans like how much to remove from salary or earnings e.t.c fall under this category
  1. Open one or two separate savings account far from home: depending on how much you are earning, it is advisable to open a savings account far from home. You should have a pensions account but If you are a low income earner, it is advisable to open just one savings account separate from your salary account while if you are a high income earner its best you open two separate savings accounts different from your salary account. You might use one for saving for future investments while the other for a particular project at hand. It is very important that you remove access to this savings account by not opting for an ATM card from your bank. I bet you would lose courage to walk or drive a mile just to step into the bank to withdraw such funds.
  1. Deposit planned money into these account(s): In this stage, you can deposit the money you would like to save into these accounts. It might be a certain percentage of your earnings. I would probably advise 30% for low income earners and 30% & 20% for high income earners if you have two separate accounts.
  1. Track your progress: This part is essential. It is very important to track your progress while saving as this would give you hope toward your written or said target. I do track my progress every two months so as to know how well and how far I have proceeded in saving toward my goal. At this stage, its best you give yourself a treat when progress is made at each saving stage.
  1. Avoid reckless spending on short term gratification: Yes, this is key and with discipline, you can achieve this through self discipline and sacrifice. Limit your spending on things that satisfy you immediately putting your long term objective at heart. To achieve this, always have a budget and an amount to be spent daily, weekly, monthly as the case may be.
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With these above steps coupled with determination and prayers if necessary, I wish you the best as you start saving for retirement. Listen, a man who saves, saves himself a lot of trouble.


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