As pension plan providers, we always encourage people to think about starting their plans for retirement as soon as possible because the sooner you start saving, the larger your retirement fund will likely be at the end of the day.
Everyone who is employed in the Cayman Islands must contribute to a registered pension plan, along with their employer, but everyone is encouraged to put just a little bit more away to ensure that there is sufficient money to cover all your needs when you retire.
The best way to establish how much extra you can put into your pension plan is to carefully assess your monthly expenditure. Building savings on unnecessary regular purchases might eventually mean the difference between an adequate pension that covers the basics and one that allows you far more flexibility in your retirement years.
Buying a morning coffee or dining out for lunch or dinner a couple of times during the working week may not seem like a great financial outlay, but over time these expenses will add up. Instead, why not think about making coffee at home or pack a lunch each day and you will be amazed at how quickly your savings can grow. Do you get your car professionally cleaned on a regular basis? Why not think about washing it yourself and saving that CI$25-40 each month? Even putting spare change into a glass jar adds up pretty quickly over time.
Once you have managed to make regular savings in your monthly budget, you need to ensure that the extra money is added to your pension plan. This can be done by way of making an Additional Voluntary Contribution (AVC). AVCs are a great way to boost your pension funds and offer members incredible flexibility and control over how much they want to save.
You can save with AVCs and also decide in which Chamber Pension Plan Lifecycle fund you want to invest. For even more flexibility, you can choose to save through your employer by payroll deduction (as per your regular monthly pension contribution) or set up a Chamber AVC account and send in your contributions as you are able.
It’s a straightforward process to save with AVCs. You simply complete an enrollment form and make your payment to the Chamber Pension Plan. Making small savings now might not seem like a big deal and shouldn’t disrupt your life to any great degree, but those small savings will add up over time. When you eventually retire, you can be comfortable to know that you have a robust pot of funds on which to live, you will be thankful you made those small sacrifices!