Last week’s article about the differences in pensions available to Bermuda residents generated more interesting responses from Moneywise readers. Serious concerns were expressed about how to manage financially into retirement, now exacerbated by the tougher job environment in our almost six-year Bermuda economic recession.

Retirement anxiety crosses borders. Even though the economy of our neighbours to the West is deemed to be recovering, a firm majority of Americans (59 percent) are more worried about retirement than eight other financial matters, among them: not prepared for medical costs of a serious illness, not being able to maintain a decent standard of living, not being able to pay off debts, rents, or mortgages, or afford health insurance. Canadian Labour Congress statistics mirror those concerns. The Dutch Government encourages employees to postpone full retirement with a fiscal benefit type approach — higher age in retirement means higher pension income.

Regardless of where an individual works and lives, pensions and retirement benefits are a constant topic. Retirement planning, whenever or wherever it is contemplated, is best handled by asking questions and obtaining as much accurate information as possible. You stay in control of your finances.

Some Moneywise readers were gracious in allowing me to use these areas of concern — including some real frustration — to raise awareness. All individual demographics, family circumstances, and confidential personal financial details have been changed to protect reader anonymity.

Personal finances are not easy to understand; even the basics can be overwhelming to the math literate people after a long day juggling work, family, social commitments and community. It is very clear to me, and my view point has not changed in all my professional consulting years, that most individuals are particularly challenged in understanding the investment components of their pensions, their rights to qualifying for a pension, their withdrawal options, along with the always nagging anxiety of trying to save enough. Fortunately, most Bermuda wage earners do not have to contend with US income tax filing and reporting requirements that may relate to foreign pensions.

Confusing as well is that individuals tend to use the word pensions interchangeably to refer to both the Government Old Age Bermuda Contributory Pension (1970) and the Bermuda National Pension Scheme (National Pension Scheme — Occupational Pensions) Act 1998). We will omit the Bermuda Public Services Superannuation Fund (for civil servants) and the Legislature Pension Fund Schemes (for Ministers and Members) from the mix for this week.

The use of composite cases helps clarify issues.

Here is the first comment that a reader sent in:

“I retired a few months ago, and found going through the distribution decision process of my Bermuda National Pension arduous and hard to understand. All choices were professionally explained: a Draw Down, a Life Annuity with a Refund Option, and others. However, I am not a math major and it was still unclear to me how the various pension choices differed. Consequently, I finally chose an annuity and a term payment amount, and signed all of the paperwork. A few months later, my tenant moved out leaving me with a shortfall on my mortgage payments. I realise now that I should have selected a significantly different monthly distribution amount. I’d like to change the terms of the annuity, but am advised amending an annuity policy may not be possible, or work to my benefit.”

An annuity is a contract. Can it be amended? Can it be revoked? Anecdotal references say most probably not, although possibly under very extenuating circumstances (coercion or duress), or in a very expensive reversion process. Those answers could not be confirmed at press time. A fine legal mind is needed here — one that specialises in retirement, pensions and employee benefits.

Reader 2 composite case is as follows:

“I was employed successfully into my late 40s in a Bermuda civil service position. Over the last few years, I’ve been quite decimated with an recurring illness that tends to flare up unpredictably, and thus was unable to work. Now that I am somewhat recovered, finding another employment position as a 50­-year-old has been an exercise in futility. Recently, I was able to finally receive a disability and HIP coverage subsidy from the Government. The monthly payment is very small and does not allow me to be independent, though, and I’ve had to consolidate with family members. This is very discouraging as I want to work, and be productive. Are you aware if there is any recourse for me to be able to obtain my government pension before the early retirement age — which for me is seven years away? I just don’t know where to start.”

This is a sample of the kinds of questions and individual case stories that are occurring these days. Reader #2 is stuck between a rock and a hard place, through no fault of his own. He wants to return to self-sufficiency and financial security, but he has no financial cushion left to help him re-enter the workforce. We will research his options.

Finally, for this week, reader #3 lived in Bermuda for 18 years until 2001. She is unsure of how to apply for her Bermuda Old Age Contributory Pension, or if she even qualifies for one based upon her work record and number of contributions made under the Social Insurance Contribution mandate to the scheme. At that time, she understood that she would have to wait until age 65 to apply to receive a benefit.

Reader #3 can contact the Government of Bermuda Website at http://gov.bm.knowledgebase.co/category/social-insurance/ or call the Department of Social Insurance at 294-9242 or e-mail them at socialinsurance@gov.bm. You must have your social insurance number and full legal name identifiers.

* “The Top Financial Worry for Americans is not having enough money in retirement,” according to the latest Gallop poll of April 22, 2014.

Please continue to send all inquiries to martha@pondstraddler.com. While I am not able to address your specific individual financial planning, I am happy to provide general research and contacts for readers to use in managing their financial affairs.

Martha Harris Myron CPA PFS CFP JSM, Masters of Law: International Tax and Financial Services, Summa Cum Laude; appointed to the Professional Tax Advisory Council, American Citizens Abroad, Geneva, Switzerland.

The Pondstraddler* Life Consultancy providing planning for international tax, immigration, investment, retirement, legacy, and related financial challenges to the lifestyles of internationally mobile individuals and their businesses residing, working, crossing borders, and straddling ponds in the North Atlantic Quadrangle. Contact: martha@pondstraddler.com