Thinking of Retiring Tomorrow?Contact an agent now about YOUR PENSION PLAN!
Many workers, especially those in the younger age groups, mistakenly believe that retirement planning should begin closer to the golden age of 60, rather than as soon as they receive their first pay check. As a result, retirement often creeps up and we are caught off guard! Today, just about 10% of the Jamaican workforce are members of occupational pension plans.
Many of these workers who are contributing to pension plans remain at risk of retiring with insufficient income to adequately provide for their needs in retirement. The danger is greatest where workers change jobs frequently without preserving their pension benefits.
The need for proper retirement planning is acute amongst self employed workers. The pioj indicates that there are 384,400 “own account workers” in Jamaica. Many of these self-employed are not able to participate in formal pension plans so do not have a structured retirement planning programme in place.
Since 1988, the COK Retirement Scheme has provided an avenue for self-employed, persons who are employed in non-pensionable posts, or who do not otherwise contribute to an approved superannuation fund or another approved retirement scheme to set aside some of their earnings for retirement.
Scheme also allows workers who have terminated their employment to transfer their pension benefits from their former pension plan into the Scheme.
With the reform of the pension system in Jamaica, the COK Retirement Scheme is ideally suited for small business owners, self employed individuals, employees of small companies and contracted workers who are now able to systematically provide for retirement and enjoy all the tax advantages than are available to pension plans. The COK Retirement Scheme provides a least-cost alternative to small and medium enterprises that do not have the expertise to manage their own pension plans. And, in keeping with our credit union roots, members’ retirement savings are insured.
So, don’t wait – begin financial plans now, for the happily ever after, which so many aspire to, but only think about when it is too late.