How to find the best RETIREMENT PLAN in Sri Lanka

Are you ready for retirement?
Everyone is getting old day by day and even minute by minutes. This is an inevitable phenomenon all over the world. The question really is whether you are ready when retirement knocks at your door? We all know it’s approaching us, but unfortunately, only a few of us are adequately prepared for this guest. There are various things we can do to prepare for retiring.

Should I plan for my retirement?
You might always be thinking, why should I think about retirement now? I’m young and fit, I can think about it later as I have important to consider now. This thinking can be a costly and financially dangerous mistake. Everyone should be looking to the future and planning for the day that they will no longer want or be able to work to earn for a comfortable life.

Furthermore, those individuals who think that the government backed retirement plans such as employee provident fund (EPF) and employee trust fund (ETF) will be enough are fooling themselves. Employers are locked into this by government regulations. Individuals who think of retirement planning beforehand are able to supplement this base income with other sources that greatly improve income potential over the course of their retirement.

Common Retirement plans in Sri Lanka?
There are numerous plans available in Sri Lanka. Here are some of the most frequently used and most popular plans.

Provident Funds
Employers are locked into this by government regulations and every employer needs to contribute a certain percentage (Currently 12% ) towards this.

Gratuity
The money individuals get when they leave their work place due to many reasons such as redundancy.

Trust Funds
Employers are locked into this by government regulations and every employer needs to contribute a certain percentage (Currently 3% )towards this.

Pension
This is available only to government employees.

Private Pensions
Employers can start a specific pension schemes for the benefits of their employees in Sri Lanka. This is not mandatory although certain employers operate these schemes.

What happens if you fall into none of the above categories or even though you fall into one category, if you realize that the benefits you get when it’s needed will be less?