Sharon Smith, senior manager at the Jamaica National Building Society (JNBS), says Jamaica stands to make substantial economic gains if the administration pays closer attention to instituting an efficient pension system for its rapidly ageing population.
Smith, who oversees the JN Individual Retirement Scheme (JNRS), operated by the building society, says that presently, approximately 40 per cent of Jamaicans contribute to the National Insurance Scheme (NIS), which at the current retirement age of 65 years, provides a fortnightly average payment of approximately $5,600 or $11,200 monthly.
“And, only about 8.9 per cent of the employed labour force, which is estimated at slightly more than one million persons, are contributing to an approved pension scheme,” she underscored.
“This is against the background that the population of citizens age 60 and over will surpass the youth population in approximately 30 years from now. Hence, our country is growing old before it gets rich,” Smith said.
She stated that, given their low pension savings and marginal planning for retirement, many persons will continue to become a burden to their children, other family members or the State.
Leave A Comment