Pension effect

Activist urges Gov’t to consider impact of retirement age hike on wellness of the elderly

By Emmanuel Joseph

Social activist Felicia Dujon is calling on the Government to examine how its decision to increase the retirement age can have potentially devastating consequences for older Barbadians.

She made the call as she contended that the Mia Mottley administration is yet to provide plausible evidence that increasing the age at which Barbadians are eligible for a full pension will safeguard the National Insurance Scheme (NIS).

Dujon’s comments on Wednesday came just shy of two weeks after Minister of Labour, Social Security and the Third Sector Colin Jordan announced in the House of Assembly that the pensionable age will move from 67 to 67 ½ years in 2028, and then to 68 in 2034, as part of reforms to prevent the depletion of the National Insurance Fund.

“The rights of elder citizens should be considered by the relevant authorities, including the ministry which is charged with the responsibility for people empowerment,” Dujon told Barbados TODAY in a statement.
She was adamant that though the Government is demanding that the elderly continue to work at the “most vulnerable stages in their lives”, Minister Jordan is yet to justify the move.

“The United Nations Principles for Older Persons maintain that the rights of the older populace should be taken into consideration when policies regarding their well-being are being drafted. For instance, have the Government and the Minister for Elder Affairs conducted any research on how the extension of the retirement age can add to the physical and psychological wellness of its elder citizens?” she queried.

“Has the Government conducted any research on how extending the retirement age can create devastating consequences for our elder folks? How do you expect nearly 70-year-olds to come to work while you as a politician can retire at 50? How is this just or fair?”
In addition, Dujon said, the medical conditions of the elderly population should also be considered when considering making such decisions about retirement and pension benefits.

Minister Jordan had also told the Lower House that the age at which people become eligible to receive a reduced pension would also be adjusted from the current age of 60 to 61 in 2025, 62 in 2028, and 63 in 2031.

“There will be an increase in the number of contributions required to become eligible for pension from 500 weeks (approximately 10 years) to 750 weeks (approximately 15 years) with no effect on those who are 60 years or older on January 1, 2024. For persons less than 60 years old on January 1, 2024, the number of contributions required increases by 30 weeks per year until 2030 and then becomes 750 weeks in 2031,” he added.

“It is understood that with most persons starting to work by their early to mid-20s, the requirement for contributing to the National Insurance Scheme for at least 15 years is entirely reasonable and brings us into line with international benchmarks.”

Jordan said there would be no change to NIS contribution rates or the calculation of benefits for current pensioners.

He said the announced measures would stabilise the National Insurance Fund and maintain the size of its projected reserves at a level equal to or greater than two to three times the value of annual benefit expenditures.

emmanueljoseph@barbadostoday.bb