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6 Retirement Goals for 2020

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  • January 6, 2020
6 Retirement Goals for 2020

The New Year is a great time to make sure your finances are on track for a comfortable retirement. 

We all know we should be saving for retirement. The difficult part is motivating yourself to spend less now so you can build a nest egg for the future. Pensions Vice President, Cleora Farquarhson suggests these strategies to better prepare yourself for retirement in 2020:

  1. Stop those bad financial habits. Make a concerted effort to reduce expenses in 2020. Credit card debt is one of the major culprits. You really only need one card. If you have multiple cards, pay off the ones with the highest interest rates first, then destroy them so you won’t be tempted to use them again.
  2. Open a Personal Pension Plan (“PPP”). Unfortunately, Employer-Sponsored Pension Plans are not mandatory in The Bahamas. However, this should not prevent you from taking charge of your financial future. A Personal Pension Plan (PPP) is a great way to save for your retirement. 
  3. Match Employer Contributions. The fastest way to build a nest egg is to get some help from your employer. If your employer has established a retirement plan for your company, join today and maximize any matching contributions. A worker who saves $2,000 for retirement and gets a 50 percent employer match on that amount gets an additional $1,000 to his nest egg. That's a better return on your investment than you are likely to get anywhere else. Also, consider making additional voluntary contributions to your pension plan. 
  4. Review Your Plan. The value of your investments likely increased in 2019, so your current mix of assets is now quite different from your target asset allocation. Consider shifting your assets back to an allocation that is in line with your goals and risk tolerance. It is also crucial that you revisit the investment options in your employer-sponsored retirement accounts and shift their allocations toward well-diversified options. 
  5. Don't wait to save. The money you deposit in a retirement account will eventually be worth much more than the amount you contributed if you allow the account to accumulate for decades. Due to compound growth (i.e., earning interest on your interest), contributions made early in your career have the potential to generate larger returns at retirement. Saving even a small sum for retirement, especially when combined with an employer match and compound interest, will put you on a path toward a more financially secure future.
  6. Make a retirement checkup appointment. If you are not sure that you are on the right road to a comfortable retirement,  schedule an appointment with your investment manager.  



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