Retirement Plan

July 25, 2008 (LBO) – Sri Lankans must start making specific plans to save and invest money early enough to help at the time of retirement or in an emergency, financial sector professionals say. Having a structured savings scheme automatically reduces the reliance on debt, Premaratne says.

Most young people have not planned their future based on their earnings and despite high inflation levels in Sri Lanka, a certain amount can be allocated for savings, says Hasitha Premaratne, head of corporate finance at Brandix.

“From time to time you see inflation rising to significantly high levels and to beat that inflation you need some additional savings other than the structured savings which is around 23 percent of your salary,” Premaratne, who earlier headed an equities research house, said.

“On the other hand from a society’s point of view, an investment is not necessarily used at the time of retirement but also at different milestones and expectations of the life cycle.”

Premaratne will be one of the lead speakers at a two-day seminar series ‘Planning Your Financial Future’ organized by the Colombo Stock Exchange that will be held on August 08 and 09 at the Galadari Hotel in Col