The Department of Labour & Pensions has increased the maximum annual withdrawal amount for Retirement Savings Arrangement accounts to $16,200 per year – or $1,350 per month – effective 1 July 2026.
Department of Labour & Pensions Director Bennard Ebanks said the increase is intended to provide additional support to retirees, particularly as the cost of essential goods and services continues to rise.
“Although the overall Consumer Price Index was 1.3 percent year-on-year, we also considered the recent increases in areas that directly affect retirees, including housing, utilities, food and other day-to-day expenses,” Ebanks stated. “Retirees are often living on fixed incomes, so increases in these essential costs can have a real impact. This adjustment is intended to better reflect those pressures and provide additional support where it is needed.”
The decision follows discussions with the National Pensions Board and takes into account recent figures reported by the Economics and Statistics Office. The figures showed quarterly increases in several key areas, including housing, water, electricity, gas and other fuels; food and non-alcoholic beverages; and miscellaneous goods and services.
Michael Myles, minister for Caymanian Employment and Immigration, said the increase is an important measure to help retirees maintain financial stability.
“Our retirees deserve to feel secure and supported after years of contribution to our community,” Myles said. “This increase recognises that even modest changes in daily living costs can affect household budgets, particularly for those on fixed incomes. It is a practical step to ensure the RSA continues to provide meaningful support to those who rely on it.”
Recipients of RSA disbursements this year between 1 Jan. and 30 June will be eligible for an additional payment, where applicable, to reflect the new maximum annual figure.
The Department of Labour & Pensions said anyone with queries related to the new RSA increase should contact their pension plan administrator.
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