The The Argus Group yesterday launched a new Individual Retirement Plan aimed at helping future retirees bridge the gap between their Government and company pensions and an adequate income.

And people changing jobs can also move their pension money into their individual retirement plans instead of being forced to transfer it to their new employer's plan.

"There is an awareness among seniors that there is inadequate income and are needing additional funds at retirement and the public is realising that the cost of retirement is quite high," Argus executive vice president Lauren Bell said.

"If they are not aware, we certainly need to make them aware that comfortable retirement requires planning, commitment and discipline and the earlier you start the better equipped you will be for retirement."

Ms Bell said Argus has offered individual retirement plans in the past but what is significant now is that this plan has been approved by the Pension Commission which means it can accommodate pension contributions locked in company plans

"When they look at their retirement income needs, they should be looking at about 75 percent of their final earnings and this will come from various sources," she said.

"There is Government's contributory pension scheme, the private employer scheme (National Pension Plan) put into force in the year 2000 but there is also an opportunity for additional contributions to be made to a personal plan that is not associated with any particular employer.

"There is a need to have vehicles that can accommodate the locked-in funds of the National Pension Plan (vested after two years)."

"When they terminate employment, they cannot be given a cash refund for the locked in funds. Once you become vested you have this pool of money that we as insurance company have restrictions on what can be done with these funds.

"If someone changes their employers, their options are to transfer these funds to another employer plan but you may prefer to be independent and set up an account and put those funds in that account."

Ms Bell regards the individual retirement plan as a vehicle to allow individuals to consolidate all their pension accounts in a structured manner over a period of time.

This provides an alternative source to grow funds for retirement which the individual can control. At retirement, a life annuity may be purchased, or a a member may elect to keep the account invested and to receive pension payments by making regular withdrawals from the account.

This flexibility gives policyholders the opportunity to delay purchasing the annuity until annuity purchase rates are more favourable, enabling them to maximise the return on their investment in the meantime.

The investments made under this plan are actively managed by Argus Financial Ltd.whose primary objective is to preserve capital and enhance growth through long term absolute returns.

The funds are designed to provide consistent and stable returns with minimum volatility.