401(k)

When I booted up the computer today, one of the lead stories from the Wall Street Journal was titled “The Rising Retirement Perils of 401(k) 'Leakage'. “ These days any article that mentions the word retirement gets my immediate and undivided attention. Here’s what I garnered from this article.  You already know that in the United States of America the retirement age is 65 though not compulsory, as there are incentives to encourage persons to stay in the work force until age 72.  The 401(k) is an automatic enrolment program offered by employers to employees, both parties contribute. Much like the Anguilla public service pension fund, a contributory pension scheme, except that you can borrow against your contributions and when you leave the company you take the funds out. The news story highlighted the dangers/threats associated with the withdrawals and loans against the 401(k) when persons leave the employ early or borrow against the fund causing what is called leakage. The article warns that leakage jeopardies the ability of the fund to grow rapidly thus there may not be enough money to pay out adroitly at the retirement age.

We do not operate 401(k) in Anguilla but those in private employment may find the implementation of a similar retirement scheme beneficial in the long run. Other than the Public Service Pension Fund there are currently no formal retirement plans that this author is aware of in Anguilla save of course for the partner hand.  Well retiree, there goes a lucrative business venture idea.