Retirement Planning

Everyone dreams of kicking back and enjoying an early retirement, but have you ever truly considered what ‘early retirement’ means to you? How do you envision those non-working years? At Sheppard, our team is here to help you answer those tough questions and ensure that you are prepared to retire comfortably. We will help you to set your goals, adapt to those inevitable changing circumstances in life, and take control of your investments.

Retirement Planning

Everyone dreams of kicking back and enjoying an early retirement, but have you ever truly considered what ‘early retirement’ means to you? At Sheppard, our team is here to help you answer those tough questions and ensure that you are prepared to retire comfortably.

Sheppard offers the Pelagic Tax Deferred Investment Plan (PTDIP), a US-denominated individual retirement plan approved by the Board of Inland Revenue (BIR). PTDIP accounts are designed to provide members with an annuity for life to make sure you can enjoy retirement your way.

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Retirement is one of the most significant and important life events that we will ever experience; however, ensuring a comfortable retirement takes years of persistent and sensible financial planning.

Retirement planning is preparing for those later years, after paid work ends. It includes identifying sources of income, estimating expenses, managing your assets, and arranging a savings program.

The process of retirement planning also involves estimating future cash flows to determine if retirement income goals will be met.

For several reasons, many people underestimate the amount required to allow them to live comfortably when they retire.

Inflation Risk

Inflation reduces your purchasing power over time.

Investment Risk

Pursuing higher returns generally involves higher volatility, but lower risk investments may not generate enough earnings to meet your future income needs.

Taxation Risk

Taxes can erode both your rate of return on investments and your retirement income.

Rising Healthcare Costs

As the cost of healthcare continues to increase globally, there is an increased risk of being unable to afford higher medical expenses as you age.

Longevity Risk

As life expectancy continues to increase, the average retirement may last more than 30 years. You need to ensure that your retirement plans can cover those extra years.

Uncertain Future

Sometimes, things don’t go according to plan. Unexpected job layoffs, health issues, or caregiving responsibilities may force you to retire earlier than intended.

Remember that retirement planning starts long before you are actually ready to retire. As the amount required for each individual to be satisfied is completely personalised, the sooner you start, the better off you will be.

By using Sheppard’s Money Management Checklist, you should be able to have a quick idea of where you stand and what you need to do in order to ensure that you are financially prepared for the future.

  • Consider if your income is predictable or if it is inconsistent.

  • Create a budget based on your income and your monthly expenses.

  • Save for retirement.

  • Purchase insurance for any unexpected life events.

  • Make an investment plan.

  • Pay off debt.

  • Ensure that you have an emergency fund.

  • Save for life events and desired purchases.

Interested in Retirement Planning? Contact us to open an account!

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Please note that Sheppard does not provide tax advice of any kind, and taxation laws and rules can change at any time, thus affecting your investments and your individual circumstances.

Sheppard’s tax-deferred annuity plan will encourage saving for the future and help you reach your long-term goals with one of our risk-managed plans.

Open an Account

You can start a PTDIP account with a minimum contribution of TT$1,000. Simply select a maturity date for the account that coincides with when you will be between 50 and 70 years of age.

Select a Strategy

Our risk-managed strategies are customised to match your risk profile and particular needs.

Save

The PTDIP is designed to be a savings plan for retirement with a tax incentive. As this plan is approved by the Board of Inland Revenue, any annual contributions you make, up to TT$50,000, are eligible for tax deductions.

Growth of TT$50K Annual Investment Contribution (Tax Exempt) Growth of TT$50K Annual Investment Contribution (Non-Tax Exempt)
31-Dec-16 4166.67 3125.00
31-Jan-17 8430.31 6322.73
28-Feb-17 12812.86 9609.64
31-Mar-17 16927.28 12695.46
30-Apr-17 21284.01 15963.01
31-May-17 25760.58 19320.43
30-Jun-17 29950.61 22462.96
31-Jul-17 34715.68 26036.76
31-Aug-17 38854.07 29140.55
30-Sep-17 43815.31 32861.48
31-Oct-17 48780.61 36585.45
30-Nov-17 54014.47 40510.86
31-Dec-17 58631.40 43973.55
31-Jan-18 64049.32 48036.99
28-Feb-18 65719.34 49289.51
31-Mar-18 70322.65 52741.99
30-Apr-18 74501.62 55876.21
31-May-18 79673.86 59755.39
30-Jun-18 85728.24 64296.18
31-Jul-18 90886.65 68164.98
31-Aug-18 96376.95 72282.71
30-Sep-18 101553.63 76165.22
31-Oct-18 100468.61 75351.46
30-Nov-18 104741.84 78556.38
31-Dec-18 103454.80 77591.10
31-Jan-19 114122.14 85591.60
28-Feb-19 121045.74 90784.30
31-Mar-19 127146.61 95359.96
30-Apr-19 133798.59 100348.94
31-May-19 131515.91 98636.94
30-Jun-19 143710.42 107782.82
31-Jul-19 149146.80 111860.10

Tax Saving

Annual contributions to your account, up to TT$50,000, are eligible for tax deductions.

Maturity Options

Your options include receiving a tax-free lump sum and applying the remaining balance of your account towards the purchase of an annuity for life, or you can choose to apply the entire value of your account towards the purchase of an annuity for life.

Name Your Beneficiaries

If anything happens to you before the selected maturity date, your nominated beneficiaries will receive the value of your account.

Flexible Annuity

You can choose the most convenient annuity payment schedule to suit your needs. It can be payable monthly, quarterly, semi-annually, or annually and may be guaranteed for a period of 5–15 years. You can also opt for the annuity to be payable upon your death to your spouse, child, or any dependent.

Transferable

Your plan is your own. If you already maintain an existing BIR-approved individual retirement plan, it can be transferred to your PTDIP account and vice versa.

Interested in Retirement Planning? Contact us to open an account!

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All PTDIP accounts are subject to quarterly management fees.

These accounts are meant for long-term investing; therefore, there are penalties for early redemptions, subject to discretion, which include a tax on the withdrawal amount, payable to the Board of Inland Revenue.

Account Holder

  • BIR number

  • Two forms of valid identification

  • Recent utility bill

  • Recent job letter or pay slip

Beneficiary

  • Two forms of valid identification

  • Recent utility bill

Interested in Retirement Planning? Contact us to open an account!

Contact Us
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