Pension fund holders were given a taste of things to come at the Argus Group's series of pension seminars held at the Daylesford Theatre in Hamilton yesterday.

The event, which was split up into three one-hour sessions, saw Lauren Bell, executive vice-president of life and pensions, tell retirees and soon to be retirees about their options for the future.

And Martha Myron, senior wealth manager at Argus Financial Ltd. (a partnership between The Argus Group and CIDEL), was on hand to discuss the volatility of the markets and what it all means to investors.

The presentations on retirement, which were the first of their kind by the insurance company, formed part of the insurance company's Pensions Awareness Week.

Ms Bell kicked-off the event by asking attendees whether they are prepared for retirement emotionally, physically and financially.

"The reality is that you are so busy in our day-to-day lives that you think about it, but you do not really have time to do anything about it," she said.

"You know it is important to put aside funds for our retirement, but you have not really given it any thought because you need to think about tomorrow rather than 10 years away.

"The reality is that when you get there, you go through all sorts of emotions."

She said the trends nowadays were that people want to enjoy financial security, while 60 has become the new 50 generation in terms of feeling younger, they are also taking better care of themselves, are actively involved with family, friends and the community alike, are seeking new experiences, and are taking up exercise and wellness programmes as they look forward to a happy and prosperous retirement.

Meanwhile, Ms Bell said, life expectancy has increased significantly from 45-years-old in 1900 to 74 in 1980 and 80 plus in 2000, with many recently retired people living, on average, 20 to 30 years longer, and 65 and older being the fastest growing age group.

There were a number of factors that those people thinking about or, indeed, going into retirement needed to consider, such as their retirement income objective, years remaining to retirement, their risk tolerance, the effect of future inflation, their current financial circumstances, future health care costs and other financial commitments like putting their children through school or college or senior care for their parents, she said.

"Your risk tolerance will determine the amount of your funds at the end of the day," said Ms Bell.

"If you do not have adequate health insurance, the cost of taking care of yourself is going to go up, as is the cost of the premiums.

"You have to take your retirement income and spread it different ways — it may go up or down."

Ms Bell outlined several ways in which savers might choose to spend their money, including managing their debt, paying off their credit cards, paying for their mortgages, setting up a back-up emergency fund, preparing medical expenses, and making plans for going back to school, pursuing hobbies, volunteering and even doing some part-time work.

And there were a variety of types of income they may have to offset these expenses, from savings, investments, rental income to a personal pensions plan, a Government pension scheme and a company pension plan, she said.

"There are a number of options available to you in retirement, including the pension from the total value of your income and the voluntary contributions which may be taken in cash and which give you flexibility," she said.

"You may choose to purchase an annuity, take your retirement income or transfer to another approved plan."

Ms Myron then gave attendees an insight into what is currently happening with markets, including the sub-prime mortgage crisis, its origins and effects, and what they hold in store for pension fund holders.

"Up to today there has been significant volatility," she said.

"It has led to market uncertainty, low interest rates, people feeling less confident financially, political instability, negativity about it from media 'talking heads' and the perception is almost reality.

"In all of this, money and emotions are tied together, but when you are looking at pensions you cannot take that pension out for 20 years and you have to put some logic and reason behind that.

"What you want to focus on is some consistency and try and eliminate some of these financial highs and lows.

"You need to focus on understanding the risks you are willing accept personally and the risks of the market place and to ensure that these risks are consistent with your goals and investment philosophy, your long-term investment objectives and not having any short-term dislocations."

To conclude Pensions Awareness Week, today, Argus will hold a cocktail party for its longest-standing pension customers, some of whom have been with the company since the 1950s.