Group Managing Director, Meristem Securities Limited, Mr. Wole Abegunde has emphasised the need for individuals to begin retirement planning at an early stage their careers, noting that the key to a comfortable retirement lies in the time allotted to putting resources aside.
Abegunde, who spoke at a private breakfast session on retirement, tax and wills hosted by Meristem Wealth Management Limited for her clients in Lagos, therefore stressed that “so if you start early, retirement is a lot easier.”
Shedding light on retirement planning, Managing Director, Meristem Wealth Management Limited, Mr. Sulaiman Adedokun, highlighted two phases of retirement.
“The active retirement which involves the desire to remain active and engaged – travel, take vacations, get involved in community and social causes. While there is also passive retirement which includes spending time with family, nursing health issues and generally winding down. These retirement phases are not inevitable and should be characterised by financial stability which must be accumulated early in one’s career,” he said.
He further explained that retirement planning should not be treated as an activity for the old or about to retire, but rather as a starter pack for a fulfilled career.
Also, speaking during the panel session, Partner and West Africa Tax Leader Deloitte, Yomi Olugbenro, spoke on understanding the tax regime in the country. According to him, “Prior to the amendment of the finance bill, all entities and companies in Nigeria have been mandated to pay company income tax on their income, but with the new amendment of the bill, micro and small enterprises are no longer automatically required to pay company income tax, where small businesses in this regard are classified as companies with an annual turnover of N25 million or less.”
He further added that “while the VAT rate may have been increased, government is also encouraging MSMEs and SMEs to float their business through legal entities and in exchange their businesses can benefit from incentives.”