‘Be sure’ before withdrawing retirement savings

Friday May 29, 2020 Written by Published in Local
‘Be sure’ before withdrawing retirement savings

Most Cook Islanders don’t believe in just packing up and leaving their jobs when they reach retirement age of 60.

For one 60-year-old says she plans to keep working until she can’t walk. “That’s the mentality of all Cook Islanders, we are workers.”

She asked Cook Islands National Superannuation Fund about withdrawing some of her savings now.

The fund made an $18 million net return on investment last year.

But chief executive Damien Beddoes warned the fund is down, because global markets are heavily affected by the coronavirus pandemic. She had a choice of claiming now at a lower value, or waiting for the market to recover and the value of her savings to rise.

Beddoes said he didn’t like to influence any decisions made when it comes to a person’s superannuation fund – ultimately, he said, it was up to them.

“We aren’t allowed to say anything like ‘don’t do it’,” he said.

But the day a person made a claim was the day it went from a normal fund to a pensioner account.  “It could mean the difference between getting an extra $20-30 a week,” he said. “That’s why we say be sure when you decide to make a claim because it’s all about the timing.”

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