By Martin Mwinga
WINDHOEK – The Namibian Defence Force (NDF) secures and guarantees our freedom, and it is my hope government and the nation can help them secure financial freedom and help them retire comfortably.
In addition to ensuring peace at home and security, our military personnel have over the past two decades, contributed to peacekeeping operations in different countries; answered the nation’s call during crisis such as floods and drought and throughout all these operations, our soldiers have served with pride and distinction. Although many Namibian soldiers have survived a tour of duty in war zones and functioned at high levels of effectiveness, unfortunately most of these soldiers are not prepared for life after the military and often life after retirement becomes unbearable and miserable for them. For the first time upon their retirement, soldiers come face to face with the enemy they were never trained to fight and many end up losing the battle for the first time and taste defeat. I dedicate this article to all men and women in uniform, especially those in the national defence forces who are closer or have reached retirement age. I provide tips on how a soldier can prepare for retirement and enjoy a decent life after retirement from the military.
Financially Handicapped Retired Soldier
Many soldiers lack the knowledge on how to handle their personal finances and this can lead to financial problems after retirement. My uncle who retired recently from the army was one of the most capable soldiers, he knew his weapons well, he survived many combat sorties and battlefields. He was a disciplined and well-trained soldier and his family members always felt safe and protected when he was around. He taught me some military lessons that I have applied to my personal life and I use these principles to manage my personal finances. To have a successful career in the military and to succeed in defeating your enemies my uncle taught me the following military principles that I encourage you to apply in your life and you will see excellent results in your finances and every aspect of your life.
(1) Understand and evaluate your enemy carefully
(2) Always be alert and recognize that the enemy could be all around you at any time
(3) Set up your plan of attack
(4) Be disciplined and be highly skilled and ready for combat
(5) If the enemy is engaged in a full-fledged assault, you may have to take drastic measures
(6) Fight to conquer your enemy effectively and efficiently
My uncle was a seasoned soldier, a good military planner and with this military knowledge, I never doubted my uncle’s planning and judgment and always believed his life was in order. One year after his retirement from the army my uncle looked disoriented and confused, he was facing an enemy that he was never trained to fight and recently I discovered that the underlying problem to his deteriorating conditions is his financial situation. His income is not enough to cover his living expenses. You see, in the army my uncle was provided with free food when in the army base and he was provided with free transport, he had all the guns for protection, army clothes and always went to army bars to socialize and all these benefits stopped after his retirement, and with his new monthly pension income he cannot afford to maintain the lifestyle he was accustomed to. My uncle’s story may be the tip of the iceberg as many of our soldiers may be ill prepared to face new challenges after their retirement from their lifelong army career.
Transition from Soldier to Civilian
Some soldiers choose to build lifelong careers in the army. However, at a particular age in your military career you will be asked to retire from the army and start a new civilian life, so be prepared to face new enemies and challenges that you may not be prepared to tackle. After my uncle’s retirement and having spent more than 35 years of service in the military, there was no programme in place to help him transition back into civilian life. He was left all on his own to find his feet on the ground. Currently there are no army financial counselors to help prepare retiring soldiers for a future after the army. Life after the army could be difficult for many retiring soldiers, and before you reach retirement age make sure you develop a new life plan to help you transition from army life to civilian life and if possible consult a financial or career counselor to help you determine post-army opportunities that could best utilize the skills learned as a soldier. Also find out if there are consultants in the Ministry of Defence to help you transition to civilian life. Although it may appear straightforward and easy to transition and adapt to civilian life, the statistics on the ground tell a different story. If you are not sure of what to expect after retirement, communicate that to your employer and they could support and guide you to succeed in post-military life.
Create a Supplementary Retirement Savings account
The majority of our soldiers serve in military operations outside Namibia and upon returning from theirs missions they may have a wallet full of cash and unsure how to spend and use this extra income. Before tapping into that extra pay above your normal salary, soldiers must first consider investing the money and use the extra income to prepare for a secure and financially independent future by opening a supplementary retirement savings account that will provide you with income while waiting for your pension payout. Upon your retirement, your monthly salary stops, and you may have to wait for many months before you receive payment for your leave days and finally your pension payout. The supplementary retirement savings account, in which you could channel surplus income during your working life, could finance your expenses for a long time without touching your retirement income. Make sure the balance in this savings account can cover you for a period of at least six months to one year or more. My uncle was ill advised as he was told that a month after retirement he will receive his leave days payout, which was enough to cover a period of three months and after three months his pension would be ready. However my uncle had to wait for six months before his leave days were paid out and in those six months my uncle suffered financially, emotionally and physically. So make sure you set aside a small portion in a secure savings account to close this gap, while you wait for your leave days and pension payout. Next week we will continue bringing you more topics on retirement planning.
Martin Mwinga works for First Capital Treasury Solutions and can be reached at mwinga@firstcapitalnam.com