The global economic downturn has highlighted our penchant for wastefulness and over indulgence but has also illustrated the importance of thrift and long term planning. Although a painful lesson in financial responsibility, the current fiscal climate has given us a new opportunity to make smart, practical decisions about money, savings and investments.

Oftentimes, we mistakenly equate retirement planning with old age. ‘Contrary to this widely held belief, retirement planning begins as soon as you start working, which is usually around 18 years old in Jamaica,’ said Richard Grant, Retirement Scheme Manager at Churches Co-Operative Credit Union (CCCU). ‘In light of the current recession, we’re finding that more Jamaicans are becoming conscious of their future and are now signing up for pension plans,’ he continued.

Additionally, people also believe that their offspring will take care of them after retirement. With the present economic challenges the country now faces, children are experiencing difficulties themselves and may not be in a position to provide for their parents. Only diligent preparation will eliminate any need for future financial dependence on another individual.

CCCU, through its Pension Gold Retirement Scheme, offers a competitive, tax-free savings plan. Any working person, including self-employed, part-time, contractual and full-time workers, between the ages of 18-60 years old, is eligible to join the programme. Participants have the option to dictate how money placed in the Scheme is invested including equity funds (stocks), six income funds (government instruments) and mixed funds (real estate, equity and money markets). Contributors also have the freedom to split their investment into different funds and make changes to their portfolio as often as they’d like.

At retirement, participants have several options for how they receive their pension. Members may choose to take a lump sum or remain with CCCU and receive cash installments. Other choices include a Survivor Pension, which provides for a pensioner’s spouse after his/her death, and a Guaranteed five year/ 10 year Pension that covers a beneficiary over the designated time period.

Although there are many institutions that offer retirement plans, CCCU’s Pension Gold boasts several advantages over other products. In addition to low administrative costs, there are no penalties for participants who fail to contribute to the Scheme on a regular basis. Furthermore, members receive competitive returns as indicated by last year’s average of 16 per cent on total portfolios. Finally, Pension Gold’s alignment with the credit union provides participants with access to its range of financial services including loans and savings accounts.

Interested persons can obtain an application form from any CCCU branch. Enrolment in the Scheme requires submission of the completed application and relevant ids. Teenagers and young adults who are interested in learning more about the importance of early retirement planning may participate in any of our outreach programmes and promotions at high schools and universities across the island.