Excerpt from The Jamaica Observer column published on Monday, July 11, 2022
By Jean Lowrie-Chin
By 2050 one quarter of the Caribbean and Latin American population will be over 65 years old, the age of retirement..
Ah, my young and fabulous friends, it is wonderful that you can enjoy those expensive fashions and parties now, but, even as I write, the stress on our National Insurance Scheme (NIS) is increasing and inflation is ravaging pensions.
In a forum held last week by the Central Bank of Barbados and chaired by David Ellis we discussed sobering statistics. By 2050 one quarter of the Caribbean and Latin American population will be over 65 years old, the age of retirement. It will be even worse for Jamaica. Panellist Diane Quarless, director of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) Subregional Headquarters for the Caribbean noted that 39 per cent of Jamaicans will reach retirement age by then.
If you add 25 years to your current age, it may be a wake-up call for how many years you have left to make meaningful plans for your retirement. Panellist at the forum, Professor Emeritus Karl Theodore, noted that, “With the shrinking of the labour force, there is a threat to our capacity to generate income as well as a second threat, the pressure on health systems.” He said that after retirement people have more health issues requiring costly treatments.
Marilyn Rice-Bowen of the Barbados Association of Retired Persons (BARP) noted that they are promoting the concept of “ageing in place” and asking for support for families who care for their elders. She says such an exercise can benefit three generations. This plan is well supported by our own Professor Denise Eldemire-Shearer. I shared that our Ministry of Health and Wellness had been promoting healthy ageing and raising awareness of non-communicable diseases (NCDs), such as cancer, cardiovascular disease, diabetes, and chronic lower respiratory disease.
Derek Osborne, partner and senior actuary at LifeWorks, Bahamas, believes that “the crisis is here”. He said that, if there is no change, pension schemes will be depleted in 15 to 20 years and governments may have to make “smaller promises or greater contribution”.
We saw that move in Jamaica last week when Minister of Finance and Planning Dr Nigel Clarke announced a $550 million subvention for low-income pensioners.
Another worrying observation by Diane Quarless is that 40 per cent of young people, up to 25 years old, in the region are unemployed. Imagine then that retired people with their meagre resources could become the prey of these hapless youth. It is a clarion call for us in Jamaica who have seen sickening reports of older folks under attack by younger relatives.
Skills training and employment are a must to protect our society.
I remember giving a talk to young folks at S Corner in downtown Kingston when the Horizon Adult Remand Centre prison was announced. “But Miss,” said a member of the audience, “why the Government building prison? Why they not building factory and giving us work?”
In a recent Jamaica Observer article, Brianna Palmer noted Dr Clarke’s observation that, of a working population of just under 1.3 million, less than half are enrolled in the NIS. An estimated 11.6 per cent of Jamaicans are covered in the private pension industry. However, these generous private sector pensions have a high level of taxation.
Our Caribbean Community of Retired Persons (CCRP) seniors organisation has been appealing to the Government to give greater tax relief to pensioners. CCRP directors Warren McDonald and Patricia Reid-Waugh have noted that Jamaica’s annual tax-free threshold is US$9,810, while it is US$12,426 in Trinidad and Tobago and US$12,500 in Barbados.
The measures we are calling for, including legislation for elderly care and protection, should be supported by Jamaicans of all ages for the benefit of our beloved elders, but also for ourselves. Our day will come
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