"Keep calm and carry on" during the current economic crisis.

Those were the words of wisdom given by Argus Group president and CEO to concerned retirees at the Hamilton Rotary Club meeting held at the Royal Hamilton Amateur Dinghy Club yesterday.

In his speech on retirement in uncertain times, Mr. Simons told attendees that now more than ever was the time to take care of your financial health and well-being, to have a financial plan and to invest in training and development to weather today's financial climate.

He also urged listeners not to panic and refrain from making hasty decisions, while maintaining a long-term perspective and considering delaying retirement to accumulate more money and allow time for the markets to recover.

In addition, Mr. Simons moved to reassure his clients that despite Argus suffering the first loss in its history in the half year ended September 2008 due to a fall in the value of its investment portfolio, the company was more than adequately capitalised with $202 million in shareholders' equity at the end of September last year, above its statutory capital requirement of $19.9 million in Bermuda on March 31, 2008.

"Not in the living memory of most of us have the world financial markets and economies been in such dire straits," he said.

"People in Bermuda and around the globe are worried about their jobs and their pension plans. The numbers, conveying mainly bad news, make your head spin."

Mr. Simons pointed to world equity markets dropping 40 percent in 2008, including 72 percent in Russia and 28 percent in the UK, with the Bermuda Stock Exchange Index (BSX) declining more than 30 percent last year. Steep drops in equities in the first two months of the year further cause for concern.

Furthermore, he said the National Economic Report of Bermuda 2008 by the Ministry of Finance revealed that Gross Domestic Product could fall by between one and 1.5 percent this year before recovering in 2010, compared to a 4.6 percent growth in 2007 and estimated growth of two to 2.5 percent in 2008, while there might be a drop in employment income, retail sales and construction in 2009, although inflationary pressure may ease in the forthcoming year with a decline in oil prices.

Mr. Simons said that those approaching retirement were feeling the impact of the fall-out and supporting themselves beyond the traditional retirement age of 65 via continued employment, rental income, other investments such as equity holdings in local and international companies, social insurance under the Contributory Pension Act 1970 and mandatory employment pensions since 2000.

He said redundancies had become a regular feature on the Island, with a decrease in employment growth leading to a greater competition for jobs, while rents were under pressure as guest workers leave the country and the demand for accommodation falls.

In addition, the Contributory Pension Fund fell by about $342 million in 2008 due to unrealised losses on its investment portfolio.

But Mr. Simons offered some words of encouragement in the form of sticking to a budget and improving your job skills as ways to ease the burden.

"People who have a financial plan, follow their budget and have clear investment goals will feel more comfortable even as markets decline," he said.

"Those who have put something aside for that proverbial rainy day will feel more secure. Further, to improve one's chances of retaining a job or getting a new one, one should invest in training and development.

"Employers will make every effort to retain their high performers, especially in hard economic times, but those with less skill will be the first to go if job cuts need to be made. In a competitive job market, it is the strong who survive."

Mr. Simons said that, in some cases, pension statements for the year ended December 2008 showed declines of more than 25 percent and the unrealised losses experienced were unsettling for many investors.

"Don't panic and refrain from making hasty decisions," he cautioned. "Maintain a long-term perspective when it comes to investing as the markets experience ups and downs on a regular basis.

"Just because the value of your investments falls, it doesn't mean that you have actually lost money.

"You have only lost money when you sell an investment at a price that is lower than when you bought it."