Our views of retirement have drastically evolved over the last two decades. We have no intention of sitting in our rocking chairs reading the newspapers and catching up on episodes of Dateline and The Young and the Restless like our grandparents did. The truth is their lives were simpler back then. They were content with a quiet and humble retirement. It seems like they primarily aspired to comfortably provide for themselves, spoil their grandchildren with monetary gifts and be the backbone of their families. For our grandparents, although life was not easy for sure, it seems between their company pension plan, NIS and Old Age Grant, most were able to get by in retirement. ’

For us, our eyes are bigger than our bellies. In addition to our grandparents’ aspirations, we also want to have  financial freedom, to travel to exotic destinations, be debt free, and to spend time with family and friends whilst living large and in style. Is this realistic now with currently available pension plans and options?

No, it is not! In order to retire the way we want, we have to find ways of supplementing the retirement options that are currently available to us through NIS, company pensions and Old Age Grants. Looking around today many institutions are not offering these supplemental retirement options in ways that are accessible and easy to understand.

Our retirement dreams may require more than our existing retirement options offer. The good news is that unlike our grandparents, we have alternatives to help us reach our goals.

One of the simplest ways to secure a comfortable retirement is by starting another portfolio to supplement what our current plans are missing.

However, not any plan will do. Here are 4 (four) characteristics to consider when selecting a supplemental plan.

Personalisation 

Your lifestyle, circumstances, finances and retirement dreams are all unique. Choose an investment which can cater to your individual interests and goals, not a one size fits all plan which offers you generic coverage which may hinder your goals.

Portability 

Chose a retirement plan that offers you flexibility in unexpected situations. Life happens! Your goals may include changing jobs, switching careers or even one day starting your own business. Having a plan that is portable and can move with you from one place to the next and will help keep you on track without affecting the value of your plan.

Inflation proof

Do you remember the days when you could get a full meal of a doubles and a red solo for less than $5 total? These days $5 can barely purchase a snack! Money doesn’t have the same value it did in the past. Inflation and changes in the cost of living means that by the time you are ready to retire, the money you would have initially invested would be considerably lower in value.

Having an aggressively managed portfolio which maximizes your returns by taking calculated risks, shelters you from the effects of inflation. These types of investments help you keep up with changes in the value of money and the cost of living to maintain your current lifestyle throughout your retirement.

Transparency

In recent times, even state owned institutions which provide retirement options have fallen short and are now leaving more questions than answers as to the future of retirement locally. The National Insurance Board of Trinidad and Tobago, announced recently a 1 billion dollar deficit and are moving to implement new policies including changing the mandatory  retirement age from 60 to 65 years old crushing any dreams of early or on time retirement for the vast number within the population who are depending on their NIB payments to comfortably retire.

Select a provider who is transparent with your investment. Knowing how your money is being invested is important as well as having the option to easily and safely monitor the progress of your investments.

Can your current retirement plan alone live up to your dream retirement? Will it seamlessly and effectively take you through retirement with your intended lifestyle?  Or are planning a champagne retirement on mauby money?