Long considered a distant concern, retirement is nevertheless something that deserves to be planned for from the very start of one’s working life. Between government pensions, occupational pension plans, and personal savings, there are several ways to prepare for this new phase of life, which is defined above all by awareness and consistency.
What will our lives be like once we receive our last paycheck? The question may seem far off, but it’s worth asking well before retirement age. In Mauritius, the system rests primarily on three pillars: the Basic Retirement Pension (BRP), occupational pension plans—to which both employers and employees contribute—and Personal Pension Plans (PPP), which individuals set up to build supplementary savings. And while occupational pension plans already provide a foundation, more and more people are realizing the need to supplement their savings with a personal plan. This is particularly important for self-employed workers, who do not have access to an occupational pension plan funded jointly with an employer.
Saving for retirement, however, doesn’t simply mean setting money aside. Investment performance, fees, projections, contribution and payout terms, and the guarantee period are all factors you need to understand before committing. That’s why it’s important to choose a professional, taking into account, in particular, the insurer’s financial stability, experience, and track record of performance. But the process doesn’t end there, as personalized follow-up remains essential. “Above all, you need to feel personally invested as a client,” emphasizes Mahesh Dookhee, Life Manager at SICOM. Regular monitoring makes it possible, in particular, to verify whether the contribution level remains sufficient and, if necessary, to adjust it.
That leaves the question of how much to save. As a general guideline, employees are advised to aim for a personal contribution of at least 6% of their salary, in addition to the employer’s contribution. For self-employed individuals, the recommended target is 15 to 20% of monthly income. At a time when the cost of living is putting a strain on budgets, planning for retirement therefore also means making choices. For Mahesh, it’s about finding a balance between daily expenses and those that will allow him to maintain his standard of living in the future.