The Cayman Islands retirement age for people born after 1969 has been increased from 60 to 65 years. Retirement age is also known as the normal age of pension entitlement. The new pension laws in the Cayman Islands cover all the employers in the private sector and require them to at least contribute 5% of the covered pay to the National Pension System and require the employees to cover the rest.
Like every other person in the working population, we all need to devise our retirement plans. The pension payments help people maintain their standard of living even after they stop earning. In the contemporary world, where most elderlies live on their own, it is essential to have backup to support daily expenses.
One needs a well-thought-out retirement plan to make it highly beneficial in days when one can’t earn a lump-sum amount. Here are a few retirement planning tips to get anyone going with a fruitful retirement plan:
Prepare your cash flows:
Every soon to be retiree should make a personalized budget and income statement recording the cash inflows and outflows to make sure that all the expenses will cater the given income or if they need to make other arrangements.
Next, list all your debts and make arrangements for how will you pay them. Don’t forget to factor them into your retirement equation.
Start to research on investment that you understand:
Research rigorously! Make sure that you invest your money in an investment plan that you understand, the person running it has integrity, has a competitive advantage and is on sale. With the passage of time, inflation is bound to increase and thus your income should. To make this possible you will need to have a source of income – so investment becomes attractive for any retiree!
Consider different pension options:
For anyone who doesn’t qualify for the company’s pension plans, they may opt for one of the Cayman Islands pension plans. This form of retirement plan will help you save for your future benefits. You will be able to commit a part of your income to be protected so that it can benefit once you retire. In many cases, these pension plans can make your employer liable to contribute, thus becoming more helpful.
In case your company doesn’t provide your pension plans, but you have gotten the stocks option, then you may need to consult a financial professional to avoid ending up with an immense bill once you retire.
Have a health insurance and safety plan:
As an elderly, you will have to pay much in your medication and hospital bills. Consider the scenario where you need emergency medical care and with medicinal care being expensive all around the world – you’re short of money. Avoid this situation. Arrange for it now!
Get yourself a plan that covers helping with daily activities, adult day care, assisted living services, visiting home nurses and nursing care. Some companies pay you a lump-sum when you leave and none after that so start arranging for it from now! It would be suitable if you make the arrangements for you, and your spouse.
Prepare for the unexpected – establish an emergency cash fund:
When you’re going through hard times, encounter unplanned circumstances, or home maintenance issues, etc. you should have emergency funds for at least six months. This fund should be retained apart from your investment portfolio. You will have to arrange the finances likewise.
What you need to make sure while planning your retirement is your portfolio always remains liquid. You shouldn’t ever be short of cash. Any uncertain situation can be dealt with smoothly if a guaranteed amount of money comes in every month, which can be through pensions. Know your needs and select a pension plan likewise and live your life as a retiree peacefully.