By Burnett Munthali

Retirement refers to the time of life when you choose to permanently leave the workforce behind. Old-age pension in Malawi is at age 50; or at any age if permanently emigrating or with at least 20 years of contributions. Employment must cease. Early withdrawal: At any age if unemployed with no contributions in the last six months, but new laws have been amended to allow the unemployed in the last three months. Disability benefit: Must be assessed with a total permanent incapacity for work.

I personally believe that working beyond the age of 50 years is more beneficial to the individual as it increases income and investment. The idea of retiring at the age of fifty and having nothing to do thereafter  is not healthy economically for the person. I recommend working or creating other sources of income and investment after retiring at age 50.

There are many disadvantages of early retirement. They include outliving your savings. You could lose some social security benefits. You might incur early withdrawal penalties on your retirement accounts. Loss of employer health insurance. Boredom. Increased risk of cognitive health issues.

The traditional retirement age is sixty-five in the United States and most other developed countries, many of which have some kind of national pension or benefits system in place to supplement retirees’ incomes.

Delaying retirement is a smart move. Your savings will have more time to potentially grow. The later years of your working life are typically at your highest income level because you are at the top of your career. Your social security benefits will increase.

How do you maintain cash flow after retirement? Look for a provider that offers options to easily transfer money from your retirement accounts into your cash account. Some firms offer periodic withdrawals to help you create a “just-in-time” income stream and allow remaining assets to produce potential earnings until you need more cash.

Despite the ability to access retirement accounts, many experts recommend that retirees keep enough cash on hand to cover between six and twelve months of daily living expenses. Some even suggest keeping up to three years’ worth of living expenses in cash. Your emergency fund must be easy for you to access at any time.

 Buy Income-Producing Investments

As a retiree, you will no longer have a regular monthly income from a job. To replace this income, consider investing at least a portion of your money into income-producing stocks, mutual funds, exchange-traded funds, or bonds.

What does cash flow mean in retirement? Expenses may include fixed and discretionary expenses, taxes, and anything else that may impact outflows of money. ​ A positive cash flow means that a retiree’s income is stable, or better, while a negative cash flow means a retiree’s income could be thinning out and is at risk.

 Conclusion

The following are ways to ensure you do not run out of money in retirement.

1) Save More.
2) Spend Less (at Least Sometimes)
3) Only Spend Income.
4) Spend Your Legacy.
5) Earn Money in Retirement.
6) Delay Social Security.
7) Get a Pension.
8) Buy Longevity Insurance.