"The priority in retirement is preserving capital rather than high-risk growth," the Deputy Finance Officer of the Kwame Nkrumah University of Science and Technology, Kumasi (KNUST), Dr James Gambrah, has advised prospective retirees, urging them to adopt investment strategies that protect their retirement benefits and ensure long-term financial security.
Dr Gambrah gave the advice at a retirement seminar organised by KNUST's Human Resource Division under the theme, "Planning for a Successful Transition Opens a Door to a Fulfilling, Purposeful and Rewarding Retirement."
Delivering a presentation on "SSNIT Benefits, Financial Management and Investment Opportunities," he said retirees have limited time to recover from poor investment decisions and should therefore exercise greater caution when investing their retirement funds.
"The priority in retirement is preserving capital rather than high-risk growth," he said, advising participants to avoid speculative investments in pursuit of quick or excessive returns.
Dr Gambrah explained that retirement often comes with a significant reduction in income, as supplementary University-related payments such as semester-based staff motivation allowances, honoraria and sitting allowances cease upon retirement.
He urged prospective retirees to develop prudent financial habits before leaving active service and to align their spending with a realistic post-retirement budget.
He cautioned that receiving a lump-sum retirement benefit could encourage unnecessary spending if retirees failed to maintain financial discipline.
On investment opportunities, Dr Gambrah recommended relatively low-risk instruments such as Government Treasury Bills, bonds and fixed deposits with Tier-1 licensed commercial banks. He warned against investing in start-up equity, unverified fintech applications and unregulated schemes that promise unrealistic returns.
The seminar also featured a presentation by Esther Bosompemaa Karikari on "Income Generation Avenues for Retirees." She encouraged participants to begin preparing for retirement several years before leaving active service and to identify ventures that could provide both purpose and a sustainable source of income.
Ms Karikari highlighted opportunities including small-scale farming, trading, agro-processing, real estate rentals, transport services, catering, tailoring and other creative enterprises. She advised participants against investing their entire retirement lump sum in a single venture, borrowing to start a business or falling victim to "get-rich-quick" schemes.
Participants were also taken through Ghana's legal framework on wills by KNUST Assistant Registrar and Legal Officer, Kwabena Yeboah-Asuama Jnr.
Mr Yeboah-Asuama explained the purpose of a will and outlined the legal requirements for making a valid one, including that it must be in writing, signed by the testator and witnessed by at least two people.
The seminar formed part of KNUST's efforts to equip staff approaching retirement with the financial, legal and practical knowledge needed to make a smooth transition into retirement while safeguarding their long-term wellbeing.
