Pension / Annuities
Turn today's savings into a steady income for retirement.
What it is
A pension or annuity plan helps you build a pot of money during your working years, then turns it into a regular income when you retire.
Certain plans, registered as deferred annuities with the Board of Inland Revenue, come with real tax breaks. You can claim a yearly tax deduction on the premiums you pay, up to TT$60,000 a year. That limit covers all of your pension contributions together, including your NIS payments.
When you reach your chosen retirement age, you can take up to 25% of your built-up fund as a tax-free lump sum, with the rest paid to you as a regular income. That is a welcome cash boost right when retirement begins.
Why it matters
- The state pension alone rarely covers the lifestyle you want.
- Claim up to TT$60,000 a year in tax deductions on your contributions.
- Take up to 25% of your fund as a tax-free lump sum at retirement.
- Starting early lets compounding do most of the work, ahead of inflation.
Pension vs. Inflation Projector
See what regular contributions could become in a structured plan, and how much value plain savings lose to inflation.
Enter a monthly contribution and a retirement age above your current age.
Assumptions: Monthly compounding. Structured plan ~6%/yr, plain savings ~1%/yr, inflation ~4%/yr. Illustration only, not a guarantee of returns.
Ready to talk it through?
I'll walk you through pension / annuities and what fits your situation. No pressure.