Transport operators warned to lock in pensions early
Transport operators are being urged to set up pension plans and engage in better day-to-day business practices.
CEO of Victoria Mutual Pensions, Conroy Rose, said after years of hard work, some taxi and bus operators cannot find the money to fill prescriptions or pay utility bills during retirement.
He was speaking at Sunday’s business and investment seminar, hosted by the Transport Operators Development Sustainable Services (TODSS), as part of its Blue Ribbon First Responders Training and Certification programme.
He stressed the importance of making preparations for the golden years, referring to a phrase often used by Jamaicans, “pickney is not yuh pension”.
Rose added that the earlier a pension plan begins, the more meaningful it will be during retirement.
Additionally, he said many operators often channel revenues back into the business without first paying themselves.
“You must set up two types of accounts - a business emergency account and a personal emergency account,” he said, adding that operators can commence with an amount with which they are comfortable.
“That’s the power of compounding interest. It’s the discipline that needs to be developed because you don’t need $200,000 or $500,000 to begin,” Rose said.
Some experts suggest that a personal emergency fund should be six times one’s monthly gross salary.
Rose also appealed to those in the transport sector to diversify the means by which they finance their business as loans are not the only option.
“We are always knocking on that door. Why can’t 10 of us come together and buy a fleet of buses?” he asked.