Sun | Oct 21, 2018

Jamaicans urged to plan for retirement

Published:Saturday | September 20, 2014 | 12:00 AM

JAMAICANS ARE being encouraged to effectively plan for retirement to ensure that they can adequately take care of their financial needs after they have stopped working.

The advice came from director general in the Ministry of Water, Land, Environment and Climate Change, Dr Sharon Crooks, at a retirement expo yesterday, at the Half-Way Tree Road offices of the Land Administration and Management Programme.

She said that deliberate planning is crucial in securing one's future at the end of an active working life.

"It is estimated that persons will need approximately 70 per cent of their pre-retirement income while those with lower earnings will require 90 per cent of their pre-retirement income to maintain their standard of living when they stop working," Crooks pointed out.

She said retirement planning is also paramount, in light of the fact that persons are living longer, as a result of advances in health care and improved standard of living.

Statistics indicate that persons age 60 years and older represented eight per cent of the world's population in 1950, with the figure increasing to 10 per cent in 2000, and projections are that older persons will account for 21 per cent of the world's population by 2050.

In Jamaica, the elderly makes up 11. 2 per cent of the existing population, from five percent in 1950, and is projected to reach 25 per cent by 2050.

Citing the popular phrase 'Goodbye, tension; hello, pension', Crooks said while many people see retirement as freedom from the stresses of the workplace, unless proper preparations have been made, they may find that "the tension you experience on your retirement is proportionate to your pension by far".