The growing challenges of planning and saving for retirement in Bermuda were highlighted in a talk by The Argus Group at a Hamilton Rotary Club meeting yesterday.

Lauren Bell, executive vice-president of life and pensions at The Argus Group, spoke of the issues facing retirees and soon-to-be retirees and what they need to do to ensure their future prosperity at the event held at the Royal Hamilton Amateur Dinghy Club as part of Pensions Awareness Week.

She said that many current seniors in retirement were struggling to make ends meet with their limited income not nearly enough for them to live off in light of the Island's ever-increasing expenses, such as food, utility bills and medication.

Ms Bell referred to the 'Bermuda Population Projections 2000-2030' report from the Department of Statistics, which revealed that the Island's over-65 population is expected to double from 11 percent, or 6,700 people in 2000, to 22 percent, or 14,554 people, in 2030, while Finance Minister Paula Cox has claimed the number of people over 65 is projected to rise to 18,500 during the next 40 years.

Allied to this, according to the UN, Ms Bell said, if more than seven percent of a country's population is over 65, it is considered an 'aged population', and, at 11 percent, Bermuda is already beyond 'aged'.

Meanwhile, the 2000 census calculates that the median age of the population was 36.9 years, which is projected to increase to 43.2 years by 2030, meaning that half the population will be older than 43 years in almost 22 years' time, Ms Bell said.

She said the findings also showed that the birth rate is declining with 1,138 live births in 1950 and 838 in 2000, with a woman required to have an average 2.10 children in order to replace herself and her partner and to account for infant mortality.

"We have an ageing population, longer life expectancies and lower fertility rates," said Ms Bell.

"In order to deal with these challenges, we, as a country, and each of us personally need to reflect on how these factors will impact upon our future.

"This subject is quite aptly dealt with in the 2004 Fordham Report entitled 'Ageing in Bermuda: Meeting the needs of seniors'. This report clearly outlines the need to take serious measures to ensure that we have adequate services and facilities in place to address the needs of our growing elderly."

Ms Bell said that few people in Bermuda plan well for their retirement, just expecting everything to fall into place for them, but that, by waiting until the eve of retirement to assess expected income and expenditure, there might be insufficient time to make the required adjustments, making it too late to save the additional funds needed to make up for the shortfall.

"Various studies suggest that you will need an income of at least 75 percent of your salary at retirement in order to maintain your standard of living," she said.

"You should really aim for the total replacement of your income. Why? Some expenses will go down when you retire, such as buying fancy work attire, but other expenses will increase, for example, the cost of food, utilities and health care."Aiming high will give you the extra funds you may need to cover unanticipated expanses or to reward yourselves with the occasional treat."Some retirees may also want or be required to provide financial support for their family members perhaps their children, grandchildren or aged parents."She went on to explain about the key pension plans and the provisions they make, including the Contributory Pensions Act 1970 or Social Insurance and the NationalPension Scheme (Occupational Pensions) Act 1999.But Ms Bell pointed out that while some seniors were doing well in their retirement, others were finding it hard to make ends meet."According to the 2004 Fordham Report, 80 percent of seniors are living in their own homes," she said."The majority of our seniors have annual incomes under $30,000, with 25 percent of seniors under the age of 80 and 50 percent of seniors over the age of 80 receiving an income of under $12,000."Despite their limited income, about 70 percent of our seniors feel that their income and assets are adequate to meet their needs."On the other hand, we are well aware that many of our current seniors are struggling. Their limited income is not nearly enough to allow them to live on this very expensive Island of ours."They have expressed particular concern that their health insurance is not adequate for doctor visits and/or for medications."Many seniors have to make difficult decisions between buying groceries, paying for electricity and purchasing much-needed medication."Elsewhere, Ms Bell said that many 'baby boomers' (those born between 1946 and 1964) will need to continue working either full-time or part-time after 65 to cope with rising life expectancy and the high cost of living, as well as maybe having to pay off the mortgage and their children's tuition or school loans and assisting in the financial support of their parents. Similar financial pressures are met by Generation Xers (those born between 1965 and 1980), who have to think about putting aside additional funds to look after their long-term care needs and may be spending money now building their careers, studying, raising children and/or trying to save for a deposit on a home."In order for us to ensure that we will have adequate income to enjoy a long and comfortable retirement, it is important for us to plan ahead," she said. "You have a huge part in determining how well you will enjoy your retirement years."Tomorrow, Argus will hold a series of information seminars about pensions for their pension clients, totalling more than 10,000 employees.The insurance company and pension provider will also be running an educational advertising campaign to raise awareness about the importance of pensions. The following day, on Friday, Argus will hold a cocktail party for its longest-standing pension customers, some of whom have been with the company since the 1950s.