Pensions: Adequate and Sustainable

I am 35 years old. How will the reforms affect me?
If the reforms are introduced on January 1, 2007 you will probably be 37 years old. If so you will retire at the age of 65 years.

The base-line for the calculation of your two-thirds pension will no longer be the best three consecutive years of the last 10 years but will be calculated on 40 years.

If your wage is equal or greater than Lm6,750 you will benefit from the increased maximum pensionable income ceiling as this increases by the rate of inflation. In this regard your contribution will also increase in accordance with the rate of inflation.

Your accumulation period will be set at 40 years.

If the compulsory second pillar pension scheme is introduced in 2010, you will probably be 41 years old. While the actuarial studies to determine the parameters for the proposed second pillar pension scheme are yet to be carried out, you will possibly fall within the age cohort that would have to mandatory invest in a second pillar pension should the government in the first structured pensions review to be carried out in 2009 decide to introduce the second pillar pensions scheme as compulsory in 2010.

I am 55 years old. I earn a salary of Lm3,560. How will the reforms affect me?
You will be primarily assessed under the current system other than the increase on the maximum pensionable income.

You will retire at 61 years of age and it is estimated that you will receive a weekly pension of Lm57.07. At 75 years of age it is estimated that you will receive a weekly pension of Lm80.65.

If you wish you may enrol voluntarily under the second pillar pension scheme. However the annuity that you will gain is still to be calculated.

I am 52 years old and earn a salary of Lm3,560. How will the reforms affect me?
You will retire at 62 years of age and it is estimated that you will receive a weekly pension of Lm63. At the age of 75 it is estimated that you will receive a weekly pension of Lm80.65. You may if you wish enrol voluntarily under the second pillar pension scheme. The annuity that you will gain however is still to be calculated.