Written by Teboho Makoetlane Produced & Design Noto Noto Many people are disconnected from the realities of retirement until they hit age 50, which usually comes with the realisation of opportunities lost in the past that would make the truth less scary. You may have been fortunate to participate in your employer-sponsored pension or provident funds. However, it would help if you took full responsibility for the decisions you will make the 5 to 10 years before retirement. Ignoring some of these decisions will cost you and abort your ambition to pass wealth to the next generation. Whether you have worked for an organisation as an employee or your own company, retirement is coming. Yes, it comes manicured differently, but it is what it is, RETIREMENT! Apply your thoughts to the following before you retire: 1. Play Catch-up and get into maximum savings mode: There are years of your life when you made enormous sacrifices for your family. Sometimes paying off loans and meeting these family needs takes so much away from the possibility of a comfortable retirement. At your age, we believe that you have honoured most of these obligations, and you can now focus on contributing as much as possible to supplement your employer-sponsored plan. 2. Maximise your after-tax withdrawals at retirement: It is essential to learn the tax pros and cons of each investment product that you buy at this age, both contributions (accumulation) stage and when you make withdrawals. As you decide which investment product to buy, make sure you understand how you can save on tax now and in the future when you most need a higher after-tax income. 3. Budget religiously with precision: While you are working, it is essential to be certain about how much you earn and how much you spend. Because financial resources are generally limited at retirement, you will have to be precise about your budget so that you can evaluate how long your accumulated retirement resources will last beyond retirement. You might want to start practising how to leave on a lean budget at least five years before you pull the retirement plug. 4. Re-evaluate the risk of your investments: By looking honestly at risk and return characteristics of all your investments, you are less likely to experience unnecessary losses or mismatches of investment outcomes to your retirement needs. As you approach your retirement, it is important to ask yourself the following questions. Are you invested in the short term or long term? Do you need some or all of the money now or later? Are you a safe investor or a risky investor? 5. Pay off debt: Depending on your retirement objectives and goals, paying off debt has a significant impact on the outcomes of your retirement plan. If eliminating debt is your retirement goal, seek advice on the best ways of reducing debt without suffocating other obligations. Understanding the cost (interest rates) of each debt facility you have will help you...

1. 6THINGS TO DO
BEFORE RETIREMENT
IN LESOTHOWritten by Teboho Makoetlane
Produced & Design by Noto Noto

2. Introduction

3. TABLE OF CONTENTS
01 02Play Catch-up & get into
maximum savings
mode
Maximise your after-tax
withdrawals at
retirement
03 04Pay off debt Re-evaluate the risk of
your investments
05 06Budget religiously with
precision
What is retire-MEANT
for you?

4. Play Catch-up & Get Into
Maximum Savings Mode
There are years of your life when you made
huge sacrifices for your family. Sometimes
paying off loans and meeting these family
needs takes so much away from the
possibility of a comfortable retirement.
At your age, we believe that you have
honoured most of these obligations and
you can now focus on contributing as
much as possible to supplement your
employer-sponsored plan.

5. Maximise Your After-tax
Withdrawals At Retirement
It is important to learn the tax pros and
cons of each investment product that you
buy at this age both at contributions
(accumulation) stage and when you make
withdrawals.
As you decide which investment product to
buy, make sure you understand how you
can save on tax now and in the future when
you most need a higher after-tax income.

6. Pay Off Debt
Depending on your retirement objectives
and goals, paying off debt has a huge
impact on the outcomes of your retirement
plan.
If eliminating debt is your retirement goal,
seek advice on the best ways of reducing
debt without suffocating other obligations.
Understanding the cost (interest rates) of
each debt facility you have will help you
come up the best plan to reduce debt.

7. Re-Evaluate The Risk Of Your
Investments
By looking honestly at the risk and return
characteristics of all your investments, you
are less likely to experience unnecessary
losses or mismatches of investment
outcomes to your retirement needs.
As you approach your retirement, it is
important to ask yourself the following
questions. Are you invested for the short
term or long term? Do you need some or all of
the money now or later? Are you a safe
investor or a risky investor?

8. Budget Religiously With
Precision
While you are working it is important to be
certain about how much you earn and how
much you spend. Because financial
resources are generally limited at
retirement, you will have to be precise
about your budget so that you can evaluate
how long your accumulated retirement
resources will last beyond retirement.
You might want to start practicing how to
leave on a lean budget at least five years
before you pull the retirement plug.

9. What is retire-MEANT for you?
Can you find the meaning of life beyond the 8 to 5 work routine? When it comes to retirement
preparedness, we mostly talk about financial readiness than we do about PURPOSE for living.
Retirees who find new hobbies, new activities, and unique things to do generally find themselves in a
happy place.
I have often heard retirees in the Lesotho mention likhoho, lifariki, temo and other work-based
activities fill their to-do list for retirement. It is worrying to find older people leaving work to work
for survival.
The greatest breakthrough at retirement is doing the things you have always wanted to do without
any financial distress.

10. I have often heard retirees in the Lesotho
mention likhoho, lifariki, temo and other
work-based activities fill their to-do list for
retirement. It is worrying to find old people
leaving work to work for survival.
The greatest breakthrough at retirement is
doing the things you have always wanted
to do without any financial distress.
What Is Retire-Meant For You?

11. Can you find meaning of life beyond the 8
to 5 work routine? When it comes to
retirement preparedness, we mostly talk
about financial readiness than we do about
PURPOSE for living.
Retirees who find new hobbies, new
activities, and new things to do generally
find themselves in a happy place.
What Is Retire-Meant For You?
Part 2

12. Tips For Choosing Retirement Plan
● Read more about retirement investments, taxation, health digests and
vacations for retirees as much as possible.
● Create a new vocabulary of the future based on research beyond your own
societal or cultural norms.
● Seek advice from independent financial professionals; financial advice is still
free in Lesotho

13. A big thank you to Ntate
Teboho Makoetlane for his
amazing thought leadership