Recently, I had a conversation with a group of young adults about the importance of preparing for retirement. Some were of the view that they had all the time in the world to prepare for their retirement years and that saving for a pension was not something that they should be concerned about. The others were more concerned and full of dread, as they considered the inadequate savings that their parents, other family members and friends have accumulated for their retirement years.

I shared with the group the experience of someone I will refer to as Germaine, who was happy at work, but was looking forward to retirement. He worked for a company that offered a pension fund for its employees, and he contributed faithfully and consistently to that fund for more than 30 years and was ready to reap the rewards. He had also invested wisely with the help of his financial adviser and had a solid portfolio of more than $10 million suitable for his age and risk tolerance. The mortgage on his home was fully repaid and he had no debt except his credit cards which he paid off each month. This placed him on the right path for his retirement and removed any financial worries he may otherwise have had.

I told the group that they too could be like Germaine but they had to take action immediately. I encouraged them to heed the advice of H. Jackson Brown who wrote, “The best preparation for tomorrow is doing your best today”, and start saving for their own retirement immediately, to take advantage of the amazingly powerful effects of compound interest.

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