Financial advisory and training firm, Sycamore Consult Limited, has tipped the working public to invest in relatively safe avenues such as shares on the Malawi Stock Exchange (MSE) and other closed end investment vehicles as a retirement financing strategy.
Sycamore Consult Founder and Managing Director Audrey Mwala said the best time to invest for retirement is when an individual is active or while they are employed.
Mwala was speaking in Blantyre on Friday during a retirement planning training that the company held.
“We are helping people plan for their retirement by having skills on how to handle their money as they are working and sharing with them the appropriate investment vehicles so that the vehicle can help them in future.
“We are dealing with people that are working and they do not have enough time to focus on business ventures, so we advise them to put more of their money into safer investments such as buying shares on the MSE or a portfolio of shares through closed end investment vehicles such as the National Investment Trust, mutual funds such as money market, balanced funds, insurance policies and treasury instruments among others,” Mwala said.
She said lack of financial literacy among Malawians has exacerbated failure to properly plan and invest for retirement and poor management of pension money among the populous.
One of the participants at the training workshop, who is also an employee of the Malawi Revenue Authority Jane Maere, said the training was an eye opener and essential for personal development.
“When you are about to retire, there are fears of what life will be like when you leave office, especially when you consider the life other retirees lead.
“We have been equipped with knowledge to explore a number of avenues that would become revenue streams once we retire. It gives me courage that if I follow through what I have been taught, I will not be miserable in retirement,” Maere said.