Retirement planning for the self employed .

A large percentage of people working in Trinidad and Tobago are self-employed, according to the Central Statistical Office, and for them, retirement planning brings unique challenges. Unlike employees in more traditional jobs, many self-employed workers cannot rely on a steady monthly pay cheque. Being self-employed also means that you are on your own when it comes to retirement savings. Whereas employees are automatically enrolled in the National Insurance Scheme (NIS), and some benefit from employer-provided pension plans, there are no similar provisions for the self-employed. The good news is that there are still savings options open to self-employed workers who want to retire comfortably, especially for those who start early.

Annuities

Provided by insurance companies and other financial institutions, an annuity lets you pay premiums and receive a lump sum or regular payments in the future.

Mutual funds

A mutual fund is a managed portfolio of stocks and bonds. Investors buy shares in the fund and a fund manager uses this pool of money to invest in securities.

Retirement savings plans

Retirement savings plans contain stocks, bonds, mutual funds and other securities.

Real estate

When saving for retirement, consider adding income property to your retirement plan because, unlike annuities, the value of the asset could increase with inflation.