Shocking Data: The 2 million Africans living in USA May Never Retire
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I can guess how World War III will start: Imagine two million elderly African parents resisting to move into assisted living facilities in the USA. You think their accents are thick now? They will be speaking in tongues. The word retirement is naturally loaded. If you are an African ex-pat living in the United States, it’s about to explode! There is always this famous predicament when it comes to African folks abroad: Retirement in USA Vs Returning to Africa. That’s not all. Finances, security, health, family and other factors will definitely add complications to this dilemma. Looking at finances alone, this group may never retire anywhere! Grab a cup of coffee and get cozy. Stay with me to the end. This might hurt a bit.
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The black immigrant population in the U.S. rose to 4.2 million in 2016 according to Pew research. This estimate includes people born in places such as Jamaica, Haiti, Guyana and other places outside the African continent. Going by the US Census Bureau data, Africa has the fastest-growing number of immigrants. More than 2 million immigrants from sub-Saharan Africa lived in the United States in 2018. That’s not a negligible number. Imagine the population of Botswana with the economic weight of the United States GDP per capita. That would make one of the richest countries in the world.
Retirement in USA Vs Returning to Africa
Mass African immigration into the USA is fairly recent. The 2 million Africans currently living in the USA are within closely related age brackets. Unlike the previous generation which was mostly students, this group is settled. The Africans have established homes, families, businesses, and places of worship. These folks have entrenched themselves into the fabric of the American community far deeper than those who ventured before them. In many ways, the African group in the USA is a microcosm of American society.
With almost zero unemployment rate, these ex-pats, for the most part, have jobs and a good quality of life. Many have children and some are starting to usher in grandchildren. Within the next 20 years or so, there will be more than a million African ex-pats of retirement age in the USA. The passage of time dictates they must act, now. But before I get into why they may never retire, allow me to analyze the two schools of thought: retirement in USA Vs returning to Africa. To misquote Shakespeare “To go, or not to go, that is the question!”
Retirement in Africa
Retirement in AfricaWe all know Africa is a piece of paradise. It’s the best place to visit. You’ve got to go on a safari! Is there anything better than watching the tropical sun go down? It is the richest continent on Earth (if we look at natural resources). The food is awesome! African traditional dishes are as varied as its people. Don’t get me started! Vacationing in Africa is always like a prolonged honeymoon. (Ok, biased opinion). Let’s talk about retirement. In-home care is the most common living arrangement in most of Africa. The elderly stay with family members in a familiar environment. These family members, relatives or hired hands help with daily tasks. This is done to the last minute! It’s a beautiful circle of life. At least that what African people consider “normal”.
Rough re-integration phase
This ever-burning love of the motherland and acute nostalgia can lead to a romanticized version of your retirement. It’s easy to overlook the bitter reality: moving permanently to Africa after living abroad for a lengthy duration comes with a healthy dose of culture shock during the re-integration phase. It’s likely that you will be leaving your family, friends and familiar network behind. How will you fill your days? Who will you spend time with? What will be your support system? Will it be difficult to visit family abroad or them visiting you? Did I say this might hurt a bit?
Let us talk about money. Will you have saved enough? Inflation can erode purchasing power drastically. In some countries, inflation is as violent as a mugger. You may require far more money to support your lifestyle than you had anticipated. Do you have an income-generating activity already established? The current debt appetite in many African nations and the new scramble for Africa (China/Russia) is not something to be ignored. It’s hard to tell how these will affect inflation in the long run. East or west home is best. Well, at least for this school of thought.
Possible Culture shock
It’s easy to assume there will be no culture shock in your mother country. There many things that are considered “normal” in Africa that will make you sad. Very sad. Healthcare is a good example. For starters, people die from the most preventable and treatable ailments. It is normal for some African hospitals to detain patients who owe money. There was a recent news piece on this. The fact that patients who default on payment are detained is not something you are used to in the United States. And grieving the loss of a loved one might take a whole level of gravity: morgues are allowed to hold a body hostage until families can pay their loved ones’ bills.
Outside of healthcare, life does not get any easier. Whatever is happening now is already affecting your retirement. Currently, there is more red tape than you are used to in the USA. There are more “landmines” to watch out when acquiring real estate or other investments. There are more hoops to jump when getting simple things such as title deeds and development approvals. These investment obstacles during your productive years will ultimately damage your retirement plans. The lack of support for innovation, small businesses, and investors may mean fewer jobs in the future.
The level of impunity, leadership myopia and abuse of authority continue to go up. (SHH don’t make Africa look bad) You will have to re-learn how things work. It all depends on the country. Africa is a great place overall. Some countries are improving. Ghana is currently encouraging African Americans to relocate to the country. But this piece is not about which country is better per se. It’s about where the “110-year-old you” will get some sanity.
Children can be the ultimate curveball. This can throw a wrench into the planning. Will they go willingly? Have they been there? Let us suspend willful blindness for a moment. First of all, you and the children may not agree on what it means to be “home”. America is home for most of these kids. Contemporary Hispanic immigrant groups are having to deal with this issue too. Like it or not, these are second-generation Americans. Something at the back of your mind also tells you that these kids will be better off in the USA. Can your American kids survive the African rough-and-tumble? Can they access your property if you are not alive? Can they be easily scammed, taken advantage of or outright robbed? Are there land grabbers in your native country or even in your family?
African parents, even abroad, are known to be harsh and strict. According to unreliable sources, they discovered “because I said so” line and that authoritarian parenting was made in Africa. At least that is the stereotype. Play along!. That does not seem to help much. Most of the parents I interviewed have failed to convince their adult children to move to Africa on a permanent basis. Yes, for them is Africa is a foreign land! If you have re-located to Africa with American-born adult children, I’d love for you to share your experience.
It’s hard to sell the benefits of Africa against life in the USA. First, all they see on the news about Africa is war, famine, poverty and political upheaval. Most American born Africans who have visited the continent generally like it as a vacation destination but not as a place to live permanently. The top concerns include Health care, rolling blackouts, day-long traffic jams and the high price of internet connectivity.
Wherever you go I will follow (said no one)
If your children choose to stay in the USA, will it be difficult for you to visit them when you are 110? (God bless you) Will it be a burden for them to visit you? Selecting a retirement place across continents could also mean – by default- that you have also chosen your final resting place. In most African countries the backyard is the cemetery. Will your descendants have access to your final resting place? That piece of property can be sold later by you-know-who, right?
Retirement in America
There are infinite reasons why Africans decided to immigrate USA – political, cultural, financial, educational, work, to be with family and others. It’s not all about money. There are infinite reasons why Africans will end up staying. But retirement in America presents its own set of challenges. It is not all rainbows and butterflies. The U.S. retirement savings system is basically made up of Social Security, defined contribution plans (401(k), 403(b) or 457), traditional pension plans (defined benefit), and individual retirement accounts (IRA and Roth IRA). In the USA the bills don’t retire. The list is long and includes electricity, gas, water, sewer, cell phones, cable TV, real-estate taxes, home, and auto insurance, food, entertainment. Then there are debts. The average American has $16,000 in credit card debt. The average debt load for Millennials is $30,580.
Retirement Statistics Will Scare You
Most Americans spend around 20% of their income on interest according to recent studies. 80% of Americans have some type of debt. 50% of Americans can’t cover a $500 emergency. Health care costs hover around $10,000 per person every year. That is why social security benefits alone cannot assure a comfortable retirement. The average Social Security recipient receives just $16,300 per year. It has been reported that 50% of the elderly will have most of their retirement income coming from Social Security. At the same time, nobody knows what the Social Security fund will actually look like in a few decades.
You can’t bank of the home equity either. At least 35% of all U.S. homeowners are Baby Boomers according to the data we reviewed. Here is the kicker. The baby boomers are expected to dump more than 20 million existing homes on the market in the next few decades. That oversupply may bring down home prices and equity. No one knows for sure. The good news is that some Americans are warming up to in-home care.
Assisted living care (or scare)
In the USA, assisted living is a type of care facility that aids seniors with daily tasks. You get a room, transportation, housekeeping, laundry, and some medical services. It’s not as evil as it sounds. It’s an institution that cares for the elderly. But it is also an institution that scares the daylight out of many Africans. The very idea of retiring in an old people’s home is very foreign. Many of these Africans are in the health care industry. They are aware of what living in such an institution looks like especially if it’s a low funded one. To be fair, it is not just Africans who do not like the assisted living concept. It’s not unusual in America for parents to resist this kind of care arrangement. Like Africa, the USA is a huge territory. Every state or region will have its own factors.
Dynamic African culture in the USA
African culture comes alive in its rich art, folklore, clothing, cuisine, music, and languages. 
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To go, or not to go, that’s not the only question
The total African Diaspora worldwide is actually around 140 million if you count all people of African ancestry living outside the continent. Only the country of Nigeria has such a huge population. One doesn’t need to be on the continent to celebrate African roots and culture. Buying African products and services is one way to support Africa.
We can easily agree that “to go, or not to go” is not the only question. Finances, family dynamics, health care, and security will likely determine your retirement location. What can you control right now? Finances! When Bill Clinton ran for president in 1992, some genius put up a sign in his campaign headquarters reading, “It’s the economy, stupid.” We can come to the same conclusion. “It’s the Money, Stupid”. Regardless of where you will retire, you can’t get away from the fact that money will continue to be the biggest source of stress. Running out of money in retirement is currently the biggest nightmare for many retirees. I hope this thinking resonates with you.
The main reason Africans living in the USA may never retire
Africans in the USA are known for 5k, not 401K. Many have not saved enough for retirement. But to be fair, most Americans are behind in saving for retirement if you look at governmental studies. African ex-pats just happen to be a segment of American society. According to recent studies, 40% of US adults have no retirement savings at all. Americans are also living longer. This is supposed to be a good thing. But one of the biggest concerns about retirement is running out of money. More years more money.
Unique reasons why Africans have not saved enough.
Let us look at factors unique to African Immigrants in the USA. These are facts of life of why Africans have not saved enough, not excuses.
Late Start: Like other immigrant Africans in the USA join the workforce late. There are challenges to living in a new country. You a lot of spend time restarting your life by acquiring education, skills and a good job. It takes a while to learn how to invest in financial assets such as stocks, banknotes, bonds debentures, forwards, futures, options, swaps, mutual funds, and ETFs. Similarly, you will not be immediately familiar with markets such as NYSE, NASDAQ, and AMEX or the benchmark indices such as S&P 500, Dow Jones Industrial Average, and Nasdaq Composite. Too many acronyms and unfamiliar terms.
It is a little confusing to tell how the retirement systems work, at least initially. There is Social Security, defined contribution plans (401(k), 403(b) or 457), traditional pension plans (defined benefit), and individual retirement accounts (IRA and Roth IRA). You will hear the Wall Street lingo on CNBC but may not have a firm grasp of what it means. Bull market? Bear market? Ostrich, Pig, sheep! (I am not making these up) What about business formations types: Sole Proprietorship, Partnership, Corporation, S Corporations, and Limited Liability Company (LLC) – do you know their advantages and disadvantages? All this unfamiliarity may mean getting a late start on retirement planning and saving.
Education: Most of African immigrants did not rely on their parents to pay for their schooling in the USA. But they will pay for their kid’s education – using their retirement funds – because African parents are by nature are good at sacrificing for their children. In contrast, many American parents will let their children take college loans instead of sacrificing retirement funds – they reason that there are no loans available for retirement. For African parents, extreme sacrifice for their children is the ultimate emotional trap.
Remittances: For many immigrants sending money to their families in Africa is a norm. That’s money one could have gone to retirement column.
Inclusion Issues: In general, black retirees have lower savings, homeownership rates, and Social Security income than whites in the USA. These financial problems mean more health problems and low medical care. Africans are part of this racial minority. Opportunity barriers in one’s working years obviously lead to lower lifetime earnings and low savings.
Mandatory travel: If you are African expat living in the United States, you probably recall all those missed flights, the lost luggage and the long hours on African trips. You have learned to mentally block those dark times from your mind and focus on the good memories. But the fact is that most people have spent tens of thousands of dollars on these journeys. Some of the trips are family-related emergencies. You probably had no choice. Still, that’s money you could have saved.
Fraud: If you live in the USA you probably know someone who has fallen victim to shoddy deals by friends and even trusted close family members back in Africa. The fact that we all know someone is very troubling. Diaspora investors have also lost millions of dollars to fraudulent property deals. There always seem to be marauding scammers advertising attractive properties with impunity. Some of the groups have visited the USA. The legal processes that should ensure the land you acquire are unable to tackle these illegal transactions
How much do you need to retire?
So many factors go into determining how much of a nest egg you really need to retire. There is no perfect answer to this question. The 4% rule is a rule of thumb used by many financial advisors to determine how much a retiree should withdraw from a retirement account each year. Let’s say you make about $40,000. That funds your current lifestyle right now. The rule assumes you’d withdraw $40,000 (4%) from your savings each year based on your $1 million vested assets (What assets?). Other advisors argue that one million dollars is not even near enough. In the USA, how long $1 million will last depends on your home state. For this reason, some Africans will opt to relocate within the USA.
Key Takeaways
First, the chances that your children will relocate to Africa are not very high. The next generation may not be equipped to navigate the motherland the way you once did. These adults will make their own decisions. Secondly, odds are that you may not be able to save your way into the millions required to retire comfortably in the USA. Don’t shoot the messenger aka this analyst.
(Warning: Math!)
Let us look at the 4% rule again. It assumes a withdrawal of $40,000 per year. A quick question arises: Among the 2 million Africans, how many are on track to save one million dollars? I didn’t think many! And for the few who can save the million, for that money to last, we have to assume it will yield more than 4% after inflation (currently 3%). That’s is a 7% annual yield. Failure to get that yield means you will eat out the principal like a hot cake. Do you see how huge this problem is? That also means $100,000 will only last you at most 2 years. When you really crunch the numbers, the math points to people staying employed. The long-winded point I’m making here is that the 2 million Africans living in the USA may never retire. Unless they do something different right now. That brings me to my next point.
Investments, side hustles, passive incomes, and small business ideas
Effective entrepreneurship combined with saving and slashing costs can be a good way to address this situation. Besides working like crazy this group must investigate investment options, side hustles, passive incomes, and small business ideas. They must look into streams of income besides their daily occupations. The plan is to supplement and eventually replace the current employment income. This is something that many Africans are already started doing.
“If you don’t find a way to make money while you sleep, you will work until you die.” — Warren Buffett
Besides sending money to Africa like crazy this cohort must also consider creating some inter-generational wealth right here in the good old USA. This is especially true if the beneficiaries are not expected to leave soon. Unity among African immigrants has been a huge issue. This has prevented them from making any meaningful impact socially and economically despite the growing numbers. They have become this “silent minority” in the USA. We hope to bring together these nomadic dreamers, grinders, hustlers, passive income hunters, emerging entrepreneurs, business owners, founders, influencers and experts. They need a place to learn from each other. They need unity to thrive like other immigrant communities and develop some economic clout as a group.
Every small business starts with an idea. To get you started, check our collection of small business ideas and opportunities. We are not promising any nutty get-rich-quick schemes and pie-in-the-sky fantasies here. We recommend the below books to get you started.
Here’s something we can both agree on: There’s only one you. You have your own circumstances. You have unique DNA. Your hopes, thoughts, and dreams are unique. You are the boss. This blog merely provides an opinion based on the content creator’s research, experiences, and personal knowledge. The information presented here is not intended to address your circumstances or that of any specific individual.
I’ve performed some detailed research and turned over a fair few sub-Saharan rocks to bring you this tantalizing piece. (Cough!) Kidding aside, I want to sincerely thank you. There are over 1.5 billion websites on the World Wide Web but you found this little page. I’d love to hear from you in the comments. Ancient Africans had this unwritten law “never eat alone. It’s only fair to share this post. Actually it’s the African thing to do.
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14 Business Lessons from Eliud Kipchoge Part II
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Mahugu Nuthu is a content creator known for his compelling and well-researched business analysis. MHGcode.com, provides insights and proven strategies for effective entrepreneurship, side hustle hunting, passive income pursuit, small business ideas, saving and tips on slashing costs.
This information is for educational and entertainment purposes only. The information that is shared on MHGcode.com shall not be interpreted or construed as financial, accounting, legal or tax advice and should not be acted upon without further professional advice.
139 Comments. Leave new
Eye opener
Thanks Carol
An extremely well written and balanced view for a very relevant subject. Many of those who are looking to retire are at the crossroad you so eloquently discussed. We need to advance this discussion and propose practical solutions to this looming problem identifying resources out there and referring this population to those resources.
Benard Theora. Like you said we need practical solutions. Lets us keep this discussion alive. I am sure people have ideas out there especially on ways to generate extra income.
Ilovemypfa@gmail.com
Great article !!
Thanks Ekow
The article is an eye opener. Thanks. I liked it
Thanks Peter. I am glad you enjoyed it.
Excellent analysis. Very impressed!
Thanks Korblaah.
This is such a beautiful and insightful piece! Great article for someone who hasnt thought far down the retirement lane and for those who have, a reinforcement that you are on the right path and hopefully progressing in your path to a decent retirement.
I love the fact that its so unbiased, to go or not to go absolutely agree depends on your unique situation but alas you are the boss! Undebatable!
Thank you, thank you! Great article!!
Mahugu thank you for the forthright and candid approach you have given to a weighty subject. The wit with which you have addressed this issue goes to attest to your understanding of the importance of ‘talking serious’ in a calm way.
Thanks, Dhiambi Kasera. I am glad you liked it.
Thanks for the analysis! It’s like WOW! Not that I didn’t know it, I did. But for others to read will be eye opening…..and yes, yes, yes, there is a need to pull together and work together. Very nail place, very beauty supply and even every dry cleaners is a “monolithic” concern of some group. We need our own niche! I’ve had a dream to set up an African Center of Advancement where new immigrants, old diaspora people who read this and have sleepless nights can converge along with the upcoming generations and have classes, meetings, incubators, information from home, educational inner track knowledge, legal advise, consular info, etc so we can move up as a bloc.
Thanks Kay. I am very pleased to hear that. Those are actually very good ideas. We need to find ways to connect.
As an African American who has moved from the US to Africa and raised my kids here in Africa, I found a tremendous amount of truth, research and insight in your article. Plenty of people need to read what you’ve produced. I’ll certainly share it.
Thanks, Masao for sharing. Let’s keep ideas flowing.
Superb piece. Well written and articulated. This is my field and passion. I am on a mission to help the African immigrant make it financially. Thank you
Thanks, Brenda. We need to find ways to share ideas and benefit from professionals like you.
Jesus! The best Article I have ever read in my entire life. This is an eye opener. Saving for going back home. Great Thanks Mahugu.
Sarah Kirungi thanks a lot. I will take the compliment. Good luck with your saving journey. Please share any tips on retiring back home.
Informative well researched and articulated Time is of essence for us immigrants to act and unite!Unity of purpose to better our communities in this regard!
Thanks
Real eye opener, other race when they migrate they don’t seem to look too often backwards. We Africans always want to invest in properties back home that will not give us return on our investment , houses we will not sleep in one week in a year or more years. Our kids will never go and leave there, our focus should be more on the land we live now and be involve, evolve and revolve . Though most of us have made mistakes in the past, it’s never too late.
Right on! Thorough, comprehensive and candid. Nothing left out.
Thank you Christine! I am glad you liked it.
Certainly, this is tantalizing to the mind. It is loaded with food for thought, which makes one wish they had known these things earlier. Well, it is never too late and better late than never. Thank you
Thanks Moses. Agreed. It’s never too late.
Very informative. In this day and age if you’re not making passive income online, it’s your choice. So many ways to start building that generational wealth or nest egg right now.
Thanks Elizabeth. I agree that passive income is the way to go. I would add side hustles, smart shopping, and saving to that list.
Thanks for the article. We definitely need think outside the box. Elizabeth, what kind of side online hustles have you found to be more rewarding. In terms of personal and financial growth?
Great documentary I can bear witness to it all. After 40 years, one month and 27 days I planned to return home for retirement. It has 3 years and nearly 5 months. I’m struggling everyday to adjust to the System. It’s very difficult light and Water are luxury. The infrastructure are substandard. My biggest problem is nothing is achieved by merits Lands paperwork, Drivers License, Passport name it you’ve to Bribes to obtain them and it’s a Norm in West Afrika countries. Then Authorities Stealing just like the article described. Visiting home like I did minimum 6 weeks a year for 22 years it didn’t prepared me to live. I completed a Villa with NBA size Basketball court, Tennis, Volleyball swimming Pool Solar powered in 2005 for retirement I sincerely thought was ready to live in Accra. But visiting Afrika is different from Living in Afrika trust me. On less you’re willing to bribe your way to get things done sometimes when you paid to get them done you’ll be lucky to get a real genius document. I’m currently looking for a buyer for my Villa and relocating back to the US or Canada.
*This article hit the Nail the head*
Thanks a lot Dr. Babatunde Kwame Osun. I am shocked! I appreciate you for sharing your experience in such depth. I hope those of us still in the diaspora will learn from it. Yours is a real case of reverse “culture shock”.
Thank you for well thought out article plus your sense of humour.
Challenge,acceptance & redemption.
Thanks, Mathenge K. I am glad you enjoyed it.
This is an amazing read and extremely realistic. It is a wake-up call for many of us Africans from all walks of life.
Agreed. Thanks Sam.
There’s one option not explored: live with your children. Be nice to your in-laws so you can pleasantly stay with one of your children! Agree on shared expenses and retire well near your grandchildren.
Great idea.
Enlightened. thanks
Thanks, Michael.
Very well written and insightful. I can related to most of the content. Been there, done that! I believe in Retirement in Africa but it needs a lot of planning.
I came here in the mid-nineties and now my kids are all grown and about finishing college.
I started my Back to Africa Retirement journey 7 years ago after joining the FIRE Movement.
I have invested there and have a solid income plus I a house and car. A must have in Africa.
I also have a small 401k here.
I am walking away from a “Fortune Magazine’s Best company to work for” at the end of the year but I am content with my decision as I am happier in Africa and I think there are currently more opportunities there.
Thanks Faddie. This is great feedback. Congratulations. Few people are able to establish a solid source of income back home. I think that’s very crucial. Someone pointed out on mhgcode Facebook page that “If you ever think of retiring back in Africa is to go back to establish business and reconnect with the system in 50s and 60s. Otherwise, it’s going to be hard to return at 70s or 80s to a system you last lived in your 20s or 30s. You need a soft landing” I see a similar theme here. “Retirement in Africa but it needs a lot of planning”. Are the kids going back? What kind of opportunities are there?
Very well researched and articulated.
Two great books, ‘Rich Dad poor Dad’ by R.T. Kiyosaki and ‘the Total money make over’ by Dave Ramsey
Thanks, Nyabwa.
This is probably the best write up I have come across, in a long long time. Balanced insightful message, I cannot appreciate more!
By far, this is a well researched write up, a clear wake up call for some of us who take Africa for granted; the false assumption that there’s no cultural shock is to hide our heads in the sand, but you have exposed this illusion fairly well. Thank you so much
Thanks Charles A. I hope we continue this important discussion.
This is really an emotional ambivalence for the diasporan!
It is a food for thought and serious one too. Thanks for sharing.
Thanks Dr.Oni. I am glad you enjoyed it.
Best piece of words have read this morning. True “ to go or not to go”
Thanks good challenge
Thanks Jojo. That’s the question. Let’s talk about it.
Well put! You bring to light the emotions and issues we shy away from. The topics that no one is bringing up at the dinner table, but very much the elephant in many an African household!
Thanks Wangechi. I am glad you liked it. Agreed, this is a weighty subject.
A good read. Statistics can be tell any story you want. Out of 2 million in diaspora I wonder how many in Africa say Kenya will actually have enough to retire of the 40 million, how about those not in employment? A good amount of remittances are to support this population including parents who worked and now in retirement.
Thanks David. True, people are still struggling back home. Some never joined the workforce due to high unemployment. This piece was about the Diaspora folks. Is there space for them back home?
This piece is an absolute eye opener with all the pros and cons of an African in the diaspora contemplating retiring. If we all make it to that golden age, it is worth reading and kick start the planning. Sad reality is the complex political dispensation in Africa and going to a place where “the only thing that has changed, is you”. Kudos to the writer and great food for thought.
Thanks Paul. I am glad you liked the article. Keep the discussion alive. And yes, leadership and management of resources continue to be a huge challenge. I like that line ” the only thing that has changed, is you”
Thanks for this very real piece. I live in Europe and the same applies to us out there. I have learnt stuff today.
Thanks Nyingma. I am glad you liked it. It’s interesting to hear that you are confronting similar challenges in Europe.
This is a very interesting and candid read, it’s very personal to some of us here in the US; I’m at the very crossroads of this dilemma and should be a wake up call to many diasporans.
Thanks Mugo for the feedback. I am getting a lot of comments on this. Its a conundrum. Let’s continue this discussion.
Retirement, the R word that I avoided until my then 6 year old daughter told me it’s not her job to care of me after I retire. As much as I have solved my retirement finances, I can’t still grasp where? Retire in Kenya or in Texas.
Thanks Wycliffe for sharing your story. I am getting tons of comments on that dilemma.
Excellent Piece. I hope many of us Africans living in the diaspora , will get the chance to read this and start educating ourselves on how to plan well for our retirements.
Great Job done Mahugu.
Thanks JK Afoakwah. I am glad you liked it. Let us keep the discussion going.
Very insightful article- Even though it does not apply me personally, ( I lived most of my working life and retired in Ghana), I have lot kinsfolk in the Diaspora.
I’ve observed about seven successful diaspora retirees living in Ghana,- the common trend is,: Visiting home often as retirement approached; building their modest homes before retirement,; setting up a small business: investing in the Ghana money market: still go back abroad for Medicals every year! . I guess the trick is, to plan well ahead and not completely sever links with ‘ home” country.
“To plan well ahead and not completely sever links with ‘ home” country”. Thanks Kofi for the unique perspective. I could not have said it better.
Long, but lively discussion that is easy to read. The piece about Immigrants organizing to be an economic or political group really hit home. To stay or to go has to be answered quickly but the reality is, you don’t have the whole picture to make a sound decision when you’re fresh in America.
Getting into investments early and talking about retirement to our children is a must. Personally, I believe in making anyplace your home. Our ancestors have made these decisions over centuries.
We should also scale down and enjoy the little things that make life enjoyable and get connected with our friends and the community.
Love this article.
Thanks Kofi. I am glad you loved the article. I like the idea of making anyplace your home. That’s a very sober way of looking at this dilemma.
Insightful and well rounded analysis!
Thanks Kwami for the kind response. I am glad you liked it.
Kofi P – Hartford said it all. That is exactly what I did and for seven years retired in Ghana, I can proudly say I am having the best time of life. Home sweet home.
But then who should develop Africa for us? We should take whatever we have learnt in America back to Africa and help Africa to develop, so generations to come will stay home and stop the brain drain. We owe this to mother Africa. Somebody had to sacrifice to make America great. Why don’t we do same for Africa?
It is a great article and it really addressed a lot of the issues that we are facing as Africans. Our major problem is that, there is still no solidarity amongst us , therefore those that are knowledgeable do not share information and those that are ignorant pretend to be knowledgeable . It is hard to bridge the gap , but with continuous education and information , we will be enlightened ,
Absolutely fantastic piece. I am an African lawyer based in the United Kingdom. I guess the issues you addressed equally applies to African immigrants here in the UK as well, I will start to take certain important steps, thanks to your article. 👌👌👌
My head is spinning. Everything that has been laid out to generate action and energize the African immigrant towards honorable retirement is not far fetched . I recently retired after 37 years toiling in banking and I can visualize the challenges even in my situation. I can recalibrate but that is not easy considering the huge societal and family commitments . We are a group of caring people but to a fault. We have forgotten to prepare for our retirement because of external challenges which are built into our African psyche. Time is running out for some of us however this awesome analysis will wake us up with new and charged vigor for better planning and good times. Thanks so much. MHG.
Great article, to go or not to go is a personal decision but this article leaves room for much thinking to right the wrongs of the past. Is still not too late to engage the challenges ahead in a positive way
A good analysis of the dilemma of anyone transplanted into any form of diaspora, giving them two worlds to straddle.
In retrospect, with better judgment thanks to experience, upcoming transplants should relax and raise the kids to assimilate the culture they are growing in instead of engaging in attempts to force their own upbringing “back home” upon the kids. The clash can an does cause many families to lose the kids. Find wise ways to introduce them to the family tree as much as possible as they are growing up and let them define their own levels of relating with the extended family of aunts, uncles and of course many cousins. Their world is complex enough for them to deal with.
Wish you had a segment on those Africans with defined pension plans (retired civil servants) and how that figures in.
Right on point. It is really an affirmation. Thank you for taking time to write. will also pass along.
I feel as if you have been watching my transition from a 23 year old Ghanaian migrant university student to a working senior electrical engineer in my early 60s, who is eager to retire back home within the next few years!
Your narrative is well written and on point. I could not agree more with the excellent pointers in your piece. Bravo!
Thank you for this amazing piece. I am happy to know that I have a brother out there who is beating the same drum as me for our people. God bless you.
Simply quintessential. I could “re-title” this piece, “Looking at the Mirror.” This is an unvarnished article. I wish every African immigrant will read this. Think of a book addressing the myriad of issues raised, it will be a best seller, oh! only if we can forget the second job and READ.
Wow. ‘Hard truth to swallow but certainly an eye opener! Perhaps we need to invent our own nursing homes where Africans can retire in America. ‘ Just sayin. Thank you.
Wow! I’m speechless. Excellent, thorough, honestly written! And on top of all these challenges here comes the Corona virus. Everyone in Diaspora should read this. Especially these young people just starting families. God bless you. I’m sharing this.
Thank you so much for this timely article. Wow you really said it. I attempted to go back and investigate if we will be able to retire (home) I spent a total of 10 months in a two year period.
I realized that Canada was home and that I could not and would not spend my retirement years in Africa.
About passive income, I happened to come across a free exclusive world club membership which is by invitation only that generates enough passive to live on in a decent way and maintain a balanced life.
I am willing to share for those whom might qualify.
David can you share the passive though the exclusive club you mentioned?
Thanks. You did a great job. The thought, insights and embedded in the write-up is great. However, the narrative is not just about African immigrants in America, it resonates Rural-Urban migration in Africa. The story is like a Siamese twin, on the survivalist. Maybe the narrative would have been different if leadership in Africa is not inept and vacuous. Thanks
I find this piece of retirement narrative an interesting and educative exposé on “to stay back or not to” for all African immigrants in the diaspora as a wake up call for all Retirees irrespective of your workplace in life. Whether you are in the diaspora or at home in Africa, your retirement plan should start from the first day you got into the world of work. This is because we often see retirement as a long time off from day one. This is an illusion that has entrapped the worker in gainful employment, whether in government or self employment. Once that is determined from day one of employment deciding whether to stay or go back to Africa will not give you much stress, because funding your retirement plan will not make you loose sleep. I am now sensitizing workers in Nigeria to this early day one retirement start. For its better to make hay when it is yet sunrise not sunup, because delay might be too costly. Thank you for the thought provoking piece.
Thanks for writing this great article.
I must admit that lately going to work has not been easy for me. I have been having this strong yearning to put my energy (both physical and mental) into my own enterprise.
How great it would be for us Africans to come together and create our own banks and other businesses and be our own customers to include all others.
Good story indeed, but I would say that even in Africa we’ve got many people who live in the city and either never go to the village or rarely does. Same applies to their kids.
As for retirement, the beauty of back home is that labor costs are still low. The little you have saved can take you far compared to trying it out here.
Travel costs, the article assumes that we are the only travelers. There are so many Americans vacationing overseas more than we do. In fact they are the biggest spenders. It is just how we choose to use our money. Help family members while they will spend on buying restaurant food- which is very costly.
Reading this gets one thinking of whats in their pocket at the moment. Its such and inspiring topic here. But there is a saying” we plan God laughs”, if you have faith and your are determined to achieve your dream, you can. As Africans we hate daring life, thats why some African are afriad of loans, mortgages, stepping out of our comfort zone is like punishment. But anyways retirement plan should be lifted..
True reality. First generation Africans need to realize that unlike the Ameticans,we do not have a family set up to help us. Our African governments technically kicked us here because of corruption and lack of opportunities otherwise with solid jobs, saving like crazy, side hassles and 3 jobs plus etc we will make. You die once. God bless.
Incisive,deep and thought-provoking!
Many thanks for this wake-up call resulting from the well researched piece you presented. For offering some suggestions on businesses to study and consider going into in order to achieve soft landing before and during retirement, I say God Bless you.
Quite insightful, with a light touch. I like that you included African authors and products for readers to explore 👍🏽 Please consider featuring this new title by yours truly:
https://m.barnesandnoble.com/w/stuck-here-marvin-opiyo/1136145354?ean=9781634986687
“Stuck Here: African Immigrants Tell their Stories,” by Marvin Opiyo
Thank you 🙏🏾
This article is very informative for Africans living in the US and how they will survive in their old age or retirement. One area of the cavier I hope you would have mentioned is health care insurance. I think it is a vital need for everyone in the U S. Africans, or African-Americans, including whites. I am a health care nurse, and I see the need for health care insurance everyday. I enjoyed reading your article, and everything in this article about how Africans are treating each other in the diaspora and st home is true to the highest degree.. God forbids our children in investing in Africa,. They should learn from most of us that have 75% of our retirement benefits investments be duped by our own family members, friends businessmen and the list goes on. Everything you’re saying is so true. You’re doing good research about Africans. Thank you for writing this article.
I look forward to reading more articles on your website in bringing awareness to Africans in their retirement age. First time following your website.
Best regards
An objective, well narrated analysis. Reiterating it reinforces the reality, and the decisions that we must make. 🙏🏽
Excellent article, well researched with thought-provoking insights. Great job.
Very inspiring piece. Beneficial to those who leap before they look.
Very inspiring piece. Beneficial to those who leap before they look.
This article is comprehensive and generally correct. Retirement is a conundrum for African expatriates. There are other factors which some people have mentioned that complicate the issue: financial planning; savings strategies; investments; lifestyle choices etc. On the whole, retirement choices for this group are not the different from the wider population and the main reason for bad outcomes are also no different. Sadly, most people fail to plan adequately and making the right decisions soon enough. If they did, the choice between going back to Africa and staying in the West would be clearer.
Agreed John. Either way, you have to be prepared.
[…] The two million Africans living in the USA May Never Retire […]
Thanks for sharing!
A very thought provoking & incisive article. I came across your article from a friend who sent me the link. Well done. I have been retired for almost 10 plus years. . Even though I have thought of relocating back home (I am a Ghanaian) & have given a lot of thoughts on some of the points in your article. Also I have learned a great lesson from my 94 year olde uncle (who is bad health) & is been taking care of as a result of some financial investments he made more than forty years ago. We have to get rid of the African notion that our kids will take care of us in our old age as it’s done in most African countries.
Also I agree on the suggestion of passive income. I have a small business at my leisure time (no stress) from home. Yes indeed we need to plan for ourselves towards the future.
Exaggerated article and analysis. One size does not fit all.. retirement income depends on your chosen lifestyle which varies per individual. It’s not all that scary.
Thanks,
Uncomfortable facts of life for the Africans in the diaspora. The “when we go back”, which for many never happen but a few have been taking the plunge. They had invested back, sadly many have not and did not have the foresight until time and circumstances catch up. There hope, faith and charity. Thought provoking article. Let this be wildly shared for they must be put on notice!
Thanks, Emile, Agreed. Let’s share ideas and compare notes. like you said, this is not an easy topic.
Outstanding piece.
Let’s chat on WhatsApp
7132402164
Thanks, Jermaine. Keep in touch!
Thank you Mahugu for this great well documented article! I am happy to join this conversation as this is the same message I have shared in many instances whenever I get a platform :). For me, I get the confusion status and the understanding that African’s have whenever they make their retirement decision but my often question to all of us all is, given a chance with all things working to your favor, where would you have want(ed) your parents to retire or spend their sunset years? many people I have asked have very often said in diaspora where they live. Now, where do you think your children would prefer for you to retire?
My main calling and platform is more towards our off springs, the generation of American children born by African immigrants. Our efforts through Empowering People of African Descent (EPAD), a non profit organization is working to help create a community of off springs of African immigrants born/raised /and educated in diaspora. Our hope is to empower, support, share cultural education, mentor and create a social & professional network environment where our children can meet each other and work together in projects and business if they so wish to. We need everyone support to encourage our children to give back through EPAD, everyone has something they can share or receive (Mentor or Mentee); We hope by creating this community, those business minded may seize the opportunities of business with us especially when it come to retirement. A community of African off spring will speak in one voice and they will be listened. Find us in Facebook @ https://www.facebook.com/epad.generations.
Thanks, Serah. Empowering people of African descent is a great idea. I will definitely follow. We need to ensure that lack of financial and cultural preparedness will not plague future generations.
Fantastic and honest write up. We need to find ways to make money while we sleep be it in diaspora or Africa. Otherwise, we may never retire in our lifetime and work ourselves into our graves or final resting places if we earn any in our lifetime.
Great job. I have not come across such a well researched and balanced article in a long time
Thanks. You are so kind!
Tooo long but it has transformed my thinking about America. Now I will go there as a visitor and enjoy may entrepreneurial stay in Africa. This document is just supergood and eye opening. Also the suggested book are great books to focus on in 2022
This piece requires everyone to take it seriously because it’s plain truth. America is an immigrant country. It’s okay for Africans to grow their population here and maybe down the line Africa will equal Europe in terms of Africa/America relations. For one African descendants are getting a lime light in sports particularly American football. We need intellectual property that can bridge the developmental gap in Afrucan territories. Our kids should be doctors and engineers that can one day take full interest to what Africa promises and move it forward. First generation immigrants in an country work harder and get torn between cultures and that is what being a pioneer means sacrifice. Visionaries never worry about themselves but what they can leave for the next generation. Set your kids as best as you can, the rest they can figure it out on their own. Besides as an immigrant you left your home to pursue your dream so can they. We were all born to move not to stay still.
Set your kids as best as you can, the rest they can figure it out on their own. Great point.
Right on the mark. I am a retiree having spent the past 42 years outside Ghana. In my age group, there are a lot of us. Some of my friends are single and live by themselves. It is not funny. A lot of retirees have successfully relocated and living comfortably on their retirement money. In Ghana you can draw on your Social Security checks. Other retirees are fed up with Africa and not going back.
I also noticed that you have advertised African writers but left out one of the greatest ones whose publishing company I used to represent. That is Osagyefo Dr Kwame Nkrumah. Please visit http://www.panafbooks.com. He wrote 16 books which are not exposed to the present generation.
https://www.panafbooks.com/panaf-kwame-nkrumah
I am shook 😳 & yet you are honestly not lying or even exaggerating much. As a parent to children who for sure wouldn’t last a day back in Kenya (I’m not sure I would either tbh), you’ve given me serious food for thought
I’m a young Sub-Saharan in the US. I have exactly 2 years in this country, and just like everyone else who came as an immigrant in America I came with high hopes and dreams. Profoundly excited. But now with all this time I’ve been here, realizing how I’m failing to connect now and blend in in the US, all that excitement of a young man finally dimming. I would lie if I say there is no single day I think of going back to Africa. Yes, I get it I can make the money here, but just like anyway in the world money still exists, just like everywhere people have meals everyday, a place to sleep and etc. Which really I have, in my experience, realized these are the most important things. I can’t even date an American here, or no one to say, can’t even make meaningful friends, or any relations per say. Hard to get a job, or a job that I really love. Or if you do get it, in my experience the manager I will find will be a total a**hole. A living nightmare that you would start to question your mere existence like ok, what’s going on. The food makes me sick at times. Nothing positive in my experience to be honest. I don’t know man, I’ve come to that point of telling myself end of this year I’m packing my bags and leave the States, and I’m pretty convinced I won’t have the urge to come back. Or at least for a loong whileee. Get to be with my family everyday. And by the way, I’m just by myself in the US, no family no cousins nor friends nor nothing, lol! Just that lonely path of a Samurai. And I do hope some day once I’m back there, the mind won’t play some tricks on me, once you pretty settled back you constantly start to have some flashbacks of my existence in the US and you become nostalgic again. 🤦🏾♂️
I understand. Everyone’s situation is different.
Wow, Wow, Wow. One of the best write ups about Africans in the diaspora I’ve ever read. Well-researched, very informative and very educative. One of the vehicles for retirement is having cash value life insurance, from which withdrawals can be made tax-free during retirement. Unfortunately, many Africans don’t understand how it works.
I plan to retire in Africa. Many of the reasons and factors that you alluded to are things I have taken into consideration. I have been visiting my country of origin once a year since 2013 just so I acclimatize myself to the norms of the country and the city I plan to retire in. The never ending bill in the USA is a factor given that my income will reduce when I retire. The weather at an advanced age in the USA is another factor for my decision. In-home care that you mentioned is another. Getting a bang for my buck is the biggest of all my factors. The exchange rate for the dollar and the currency of my country of origin is such that as much as my income will reduce, I will still live like a king out there in Africa. House is built with no loans, electricity and water is cheaper than here in the USA, kids are grown and working out here in the USA, car is bought with cash and shipped out to Africa, gasoline is affordable given my disposable income, distances are very short to drive, eat what we call organic foods everyday out there, just to mention a few. I think I will live better out there. If I feel the least sick, I board a plane and come out here for treatment. I don’t think I will live happily retiring out here and have to pay high amount in playing golf, when I can play it out in Africa for peanuts.
Thanks, Wangho. Nice plan. I see what you did there. I guess it is a matter of coming up with a good plan.
Superb analysis!! Thanks for sharing!!
Wow !!! Reality finally written on paper in the simplest but matter of fact , truth of the matter terms . Just acknowledging this will help a lot of Africans in the diaspora face the truth and deal with our current but very individualistic reality which you so eloquently laid out … old age , retirement, children, death and legacy abroad or at home in Africa ….???????? Thank you 🙏….
Very well written. I can see my own circumstances within this piece. A great eye-opener and wake up call. As they say, those who have ears should hear you. Thank you for this information.
So limpide and interesting!!! Clear presentation of the African-American expat people or families dilemma
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