Maintaining Adequate Financial Capacity at Retirement

Abstract

Often, many persons after retirement from active service find it difficult to maintain their financial capacity and life styles or stay close to what was obtainable immediately before retirement. On these bases, this paper aimed at examining ways in which retirees can still maintain at least at close range, their financial capacities. This paper examines the nature and concept of retirement, sources of retirement income, the role of PENSIONS in this perspective, factors influencing the maintenance and measures for maintaining the financial capacity. This paper is purely an essay type-descriptive in nature and the following issues are pertinent: retirement refers to a time when you are out of active service as a result of age, the major sources of retirement income are social pension, asset income, retirement savings and investment, work or other income-generating activities, pensions and home equity among others. Pensions play a vital role in maintaining adequate financial capacity. Knowledge, skills, attitudes, financial responsibilities affect this maintenance while effective management of money, planning ahead, maintaining adequate level of savings, making appropriate choices, investment in assets, leaving special skills for entrepreneurship among others are various ways that can assist in maintaining adequate financial capacity at retirement.