Retirement planning is a critical issue for everyone. Centuries ago, retirement existed only for those forced out of the workforce by disability and for the wealthy few who could afford it. Today, long term retirement planning has become increasingly important. The rise of pension programmes, the lengthening of life spans, and other factors, have contributed to retirement becoming not only a common event but one that people look forward to.
Retirement has come to be thought of as a period of time during which you no longer work for a living. The traditional retiree was suppose to have led a fairly comfortable existence subsisting on income from Social Security and the pension plan from the one company he or she worked for. Any personal savings were icing on the cake. Without the savings though, a large number of retirees could still live comfortably. Today, traditional retirement is becoming even more rare. So where will the money you need to live on come from? Will the social security provided for by the National Insurance Scheme be sufficient to maintain your current standard of living? Will it be enough to live on during retirement? The answers to these questions may reveal that it will be up to you to obtain the bulk of the money for a proper retirement income.
More and more, people are continuing to work or returning to work during retirement in order to supplement their income. Consequentially, you should not wait until you are in your fifties or sixties to start saving for it. What should you do? The answer is to start planning today. The sooner you begin, the better your chances of reaching the financial goal by your retirement years.
It all boils down to taking the responsibility and having the discipline to start a retirement plan today.People tend to want the same standard of living and financial independence in retirement that they had while they were working. And most importantly, people want to be able to retire early or retire when they choose to do so. How well are you preparing for retirement?
If you are not concerned that you will not have enough money to live comfortably, it is assumed, therefore, that you have been engaging in some degree of thought and planning for post retirement. If you are concerned, then it is recommended that you begin to examine your savings and investment plan. Bear in mind that the sooner you insure your future, the more comfortable it is likely to be. More and more, individuals are seeking security for post retirement through coverage by pension plans with a Life Insurance Company. Demerara Mutual can provide you with such coverage.
TYPES OF PENSION PLANS
Life insurance companies play a significant role in the pension industry through their investment services and the wide variety of plans they offer. They administer pension products in two areas: group pensions and individual pensions.
Pension plans can be either defined benefit plans or defined contribution plans.
Defined benefit plans provide a specific annual benefit payable to you at retirement or at a specified time, such as death.
Defined contribution plans, allocate contributions to an individual account for you. Your retirement benefits will depend on the amount of contributions to those accounts and on investment income or loss, expenses, and account forfeitures by other persons, which are allocated to the remaining accounts.
To learn more about the different types of pension plans we offer including Endowment and Annuity policies, we advise that you contact any of our Branches/Agencies or the one located closest to you for further information and guidance.
