Every employee in the Cayman Islands must contribute at least five per cent of their monthly earnings into an approved pension plan, with their employers also contributing at least five per cent to the pension plan for their employee. Ten per cent of your earnings might seem like an adequate sum of money to be saving for your retirement, but even if you are a careful budgeter and have calculated how much you will need to live on, you may still need a little extra help financially when you are finally ready to retire. Unexpected trips off island, home and car repairs and medical costs can all materialise when you least expect them.
That’s where additional voluntary contributions (AVCs) can make all the difference. AVCs are a great way to add to your existing pension contributions to help ensure you will be financially secure when you finish your working life, ready to take on any unplanned expenses that may come your way.
Making an AVC payment is a simple procedure. For Chamber Pension Plan members it involves completing an enrolment form and making the payment. You can set up a regular payroll deduction with your employer to make regular monthly payments, or you can set up an AVC account with us and make your payments as you wish. A great benefit of making AVC payments therefore lies with its flexibility. If you have extra cash over one month you can make a larger AVC payment than normal; if you have nothing to spare at the end of the month you can simply make no AVC payment that month. The control is with you.
The Chamber Pension Plan is comprised of a number of different Lifecycle Funds which target your specific financial goals. When you make an AVC payment you can choose into which fund the AVC will be paid, giving you even more flexibility and control over your pension savings. Just as with you and your employer’s regular pension contributions, tracking your AVC payments is a simple and straightforward procedure. You can follow the growth of your contributions with your semi-annual personalised account statement, which breaks down your contributions, those of your employer and your AVCs, creating a record of your pension plan that’s easy to follow and easy to understand.
Your statement is accessible via the Chamber Pension Plan account access. (Gaining access is easy – just call our Chamber Pension Plan hotline 345-745-7630 if you need a username and/or password.)
AVCs are a flexible tool which can make the difference between a pension that covers your basic needs and one that truly allows you to live your retirement comfortably. If you have a little extra cash to spare, it is a great method of investing for your future.