Retirement planning is setting aside income or setting up a savings and investment plan for your retirement. The benefits of retirement planning are that you are guaranteed an income after you stop working and stop earning income. Therefore, when you retire you will receive a pension to assist you with your living expenses.
Who needs it?
Individuals who are desirous of setting up Retirement Packages for themselves or orgainzations that want to provide a Retirement Packages for their employees are the people/groups that need this facility. For organisations, all confirmed employees between ages 18 to 55 are eligible to join the plan. The normal retirement age is 60, with early or late retirement at the discretion of the company/organisation that is on the plan. For individuals, anyone who is desirous of starting a pension plan.
How much does it cost?
For group pensions, the employer pays a fixed percentage of the employee's annual salary as the employer’s contribution and the employee pays a fixed percentage from his/her current annual salary as the employee’s contribution. These payments are made on a monthly, quarterly, semi-annual or annual basis based upon the option chosen by the employer when effecting the plan. For Individuals, contributions are paid on a monthly, quarterly, semi-annual or annual basis according to payment plan they chose when effecting the policy.
What are the DM options?
Demerara Mutual Life offers individual pensions as well as group pensions.