... Doctors, lawyers failing to take advantage of retirement plans

A MARCH 2018 survey conducted by the Medical Association of Jamaica (MAJ) among its members found that a large number of doctors did not believe that they were prepared for retirement, while the majority confirmed that they were only somewhat prepared.

Of a total of 318 medical doctors who responded, 164, or 51.6 per cent, said that they were only somewhat prepared for retirement, while 133, or 41.8 per cent, said that they were not prepared. Only 21, or 6.6 per cent, of the respondents believed that they were prepared for retirement.

Additionally, the survey revealed that the majority of the respondents were not participants in any formal retirement plan.

Of the respondents, 120, or 37.7 per cent, were without a pension plan. Forty-nine, or 15.4 per cent, of the respondents had a government pension, while 115, or 36.2 per cent, of respondents had a private pension or retirement plan.

Sharon Smith, senior manager with responsibility for the JN Individual Retirement Scheme (JNRS) at JN Bank, said that many lawyers are similarly unprepared for retirement.

“The good thing is that many successful lawyers, in the context of their business, acquire property. Unfortunately, that is all many have; therefore, even if they have property, their cash flow is still a challenge, ”she said.

Smith noted that similar to doctors, many lawyers don’t have pension plans.

“Many also ignore matters such as tax benefits because if they’re not in an approved pension scheme, they’re not saving on taxes, and their income is being taxed at the maximum,” she posited.