Experts have cited the tendency by many Malawians to live above their income means as the main reason why many of them fail to invest for their future.
Audrey Mwala, Managing Director of Sycamore Consult Limited, made the sentiments in Blantyre during Retirement planning training the company held for top academia from national universities in the country.
Speaking to MIJ Online, Mwala said many people face financial challenges later in life after retirement due to lack of financial management skills and lack of preparedness at an early stage.
“The challenge is that people struggle to live a comfortable life after retirement, I have heard other people do not even want to retire when time comes and they ask for a special arrangement to still keep working. This clearly shows they are not ready for retirement,’’said Mwala.
She has since stressed the need for people to start investing at an early stage in order to prepare for a comfortable retirement life by saving and investing their income earned while working.
She however disclosed that many people fail to do so because they live above their income level hence they struggle to make a living, thereby lacking excess income for investment.
“It is possible for everyone to save money for investment the challenge is that many people are living the life they are not supposed to be living. For example, you find people who were earning little, once their income improves they want to adjust their living expenses to match the income, by doing so they are left with nothing to save or invest,” Mwala said.
Meanwhile one of the participants Dr. Liveness Banda-an Associate Professor of animal science at LUANAR, described the training as an eye opener in personal financial management that is key for living comfortably after retirement.
“This meeting is really beneficial for me personally because it has given me a chance toreflect on my life to see where I am and where I am going and whether am really prepared for the retirement that is coming soon…at first I thought it is far but after this training I have seen that it’s not so far and I need to start preparing for it,’’ Said Dr. Banda
Sycamore Consult Limited has been holding a series of trainings on personal and corporate financial management, retirement and investments as well as corporate leadership and management skills both at local and international levels.