“Please think carefully before withdrawing your retirement money,” OBA Senate Leader Marcus Jones said in reference to the newly-approved legislation which allows a person to voluntarily withdraw up to $12,000 from their pension plan, with Senator Jones adding that they understand some desperately need access to monies and there are simply no other options.
Senator Jones said, “Even before Covid 19, we all knew people who were really struggling in Bermuda’s declining economy. Then came the virus.
“Those who were struggling before Covid 19 and now seriously hurting. It is increasingly hard to make ends meet. And the economic horizon looks pretty bleak.
“Yesterday, the Senate met to approve an amendment to Bermuda’s pension laws to allow up to $12,000 to be released.
“The amendment was supported by both political parties. This is a bi-partisan effort to provide some degree of relief to those in need.
“Here are a few things you should know about the proposal, which should take effect in the next week or so:
- Those with a private pension can apply to withdraw up to $12,000
- This is for people who have not yet retired
- This is a one-time withdrawal available until 30 June 2021
- There will be no fee for a withdrawal
- Covid 19 amounts to hardship – there is no need to show additional hardship
- People who draw this money now may still on retirement draw up to 25% of their pension fund
“The OBA supported the Government’s proposal because we recognise that there are those who desperately need access to monies – and need it now.
“OBA support also came hand in hand with some serious concerns. We very much understand that pensions are monies that people save for a rainy day. But it is raining now. For some, there are simply no other options.
“Please think carefully before withdrawing your retirement money. Just because you can, does not mean you should.
“Please talk to those you trust to make sure that any monies you withdraw now are used in the best way, to put you on the best financial footing for the future.”
