The Eastern Caribbean Central Bank (ECCB) is advising people to think seriously about having pension plans.
The important issue is highlighted on this week’s episode of ECCB Connects, the bank’s weekly public education outreach programme.
Actuary and Partner at Morneau Shepell Derek Osborne explains that pensions in their simplest form are secure forms of payment that one receives, usually monthly, when something happens:
For example, when the individual concerned reaches a certain age, retires from an employer or in some cases when he or she becomes disabled prior to the retirement age.
Osborne, who is also an Advisor to some ECCU Social Security Systems, added that pensions are not just for older persons, because while they come later in life with retirement, there is need to set the stage for that.
He encourages young working people to have a pension, and explains that this is necessary as having access to a monthly income stream that is guaranteed for the rest of one’s life, is a desirable state of affairs after retirement.
“Not only is a pension payable when you get old, but there are short term benefits as well that can help you have some form of income when you get sick”.
Osborne also addresses the key questions of: What do you need to put aside for your retirement years? How much do you need to save to achieve that specific target.