Six reasons to include savings for retirement in your 2025 to-do list

As we journey in the New Year, it is crucial to consider our financial futures and take certain steps towards making it memorable. Therefore, establishing a thriving retirement savings account (RSA), which is saving for retirement, is one way to secure once financial well-being. The year, 2025 provides an excellent opportunity to plan; here are eight compelling reasons to add an RSA to your 2025 to-do list, if you have not already done this:

Financial security in retirement:

Starting a retirement savings account now facilitates steady income via Programmed Withdrawal (PW) or Retiree Life Annuity (RLA) after retirement. It is never too early to begin planning for your future financial security.

Compounding growth:

The earlier you contribute to your retirement savings account, the more you benefit from compounding interest. Your savings can grow significantly over time, leading to a more substantial retirement fund.

Employer and employee contributions:

A minimum of 18 percent (employer-10 percent, employee-8 percent) of your monthly total emoluments. Employers are obligated to make these contributions under the Contributory Pension Scheme (CPS). So, ensure to follow up with your employer to get your RSA set up so that they can start remitting. In addition, you can opt to add Voluntary Contributions (VC) to augment your retirement savings.

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Investment options:

Pension Fund Administrators offer a variety of fund options that take into consideration your age and risk appetite, with the primary objective of ensuring financial security at retirement. This is between Fund 1and Fund V1 one and two.

Peace of mind: Knowing that you are actively saving for retirement can provide peace of mind; alleviating concerns about financial instability in your golden years.

Analysts at Stanbic IBTC Pension Managers says opening a retirement savings account provides you with essential information that allows you to understand how your pension contributions are managed and invested.

“As you bask in the euphoria of a new year, incorporating a retirement savings account into your financial plan is a wise decision, according to the Pension Fund Administrator.