THE conversation around retirement is getting easier with JMMB’s retirement hub, Hello Future. This online repository offers a wealth of information, tools, and tips to guide individuals on their journey to financial freedom.

In an interview with the senior corporate manager of fund services at JMMB Fund Manager, Camille Steer, she shared that the goal is to shift the conversation around retirement from being solely associated with older adults.

“We want people to get excited about planning for their future,” she told the
Jamaica Observer.

The Hello Future hub simplifies the retirement planning process by providing a user-friendly website that calculates a personalised retirement savings score. This score serves as a benchmark, indicating progress towards achieving one’s retirement goals. The hub also features retirement calculators and expert guidance, making it easier for individuals to navigate the often-daunting task of planning for their future. When using JMMB’s retirement calculator, individuals can input their age, monthly salary, and desired monthly pension, and the calculator will generate a score indicating whether they’re on track to meet their retirement goals. With the ability to adjust various parameters, users can simulate different scenarios and receive a projected retirement portfolio schedule. This valuable tool reveals whether you’re adequately prepared for your desired monthly income in retirement or if there’s a shortfall. For example, a score of 31 per cent may indicate a gap in savings, prompting the user to reassess their strategy.

“It is a catalyst for change, so it is not just pushing out the numbers but having a conversation with you,” she highlighted.

The calculator also considers the user’s desired income at retirement, comparing it to their current savings. If a gap exists, the tool encourages users to take action, providing resources and guidance to bridge the gap. This personalised approach helps individuals understand if their current savings will cover their needs in retirement, with the goal of achieving a 75 per cent replacement rate.

According to Steer, the idea for the retirement hub arose from internal discussions on how to centralise and simplify access to retirement planning information. The team recognised that numerous articles, videos, and other resources were available, but a cohesive platform was needed to provide comprehensive support. She stressed that the aim was to revolutionise the way people think about retirement, and she is urging young adults to start planning for their future now. For too long, retirement has been viewed as a distant concern, relevant only to older generations, but waiting until the latter years might be too late.

“This is where it’s at. Start now so that you’re not in a panic. You’re not going to go down in terms of old-age poverty because you waited until too late. You need to get the movement started now,” she warned.

While the National Insurance Scheme (NIS) provides a foundation for Jamaicans’ pensions, she emphasised that it is insufficient on its own. As such, there is a need for additional pension arrangements. She expressed concern that the NIS, which is the first pillar of retirement planning, is still not seeing many Jamaicans contributing to the NIS, despite being required to. She did, however, openly state that even the second pillar, pension arrangements, has limitations, with low coverage and commissions as reported by the Financial Services Commission. Steer noted that while people often get excited about short-term goals like buying a car or home, they tend to neglect saving for their golden years. She hopes that the Hello Future website will inspire individuals to take action and work towards achieving their long-term financial goals. While the retirement calculator is designed to be user-friendly, some individuals may still require assistance in filling it out and can reach out to JMMB for clarity on using the calculator and understanding the necessary assumptions.