Jordan says Barbadians must plan for their retirement

Minister of Labour, Social Security and The Third Sector Colin Jordan has urged younger Barbadians to plan now for their retirement, including through contributing to the National Insurance Scheme and making other investments, as he expressed concern about some people lacking financial security in their senior years.

He also suggested that Barbadians need to be educated on financial management.

Jordan offered his views as he contributed to debate on a resolution to grant $2 226 311 from the Consolidated Fund to supplement the 2021/2022 Estimates, including $1 452 000 for design work for the new Geriatric Hospital which will be constructed in the National Botanical Gardens.

He reminded Barbadians that if they live long enough to become seniors, they may be unable to work and therefore needed some other form of income to support themselves.

“And so, I am calling on Barbadians to contribute to the social security scheme. The National Insurance Scheme has been set up so that when we get to the point where we .
. . no longer have the strength or maybe put in enough time, that there is something that we can rely on to support us to pay for those essentials that you will still need,” Jordan said.

“I will also indicate to Barbadians that those who can ought to do even more than the contribution to the National Insurance Scheme, those who can have other investments for retirement, whatever those investments are – retirement plans, investing in real estate, whatever a person is able to afford. I am encouraging Barbadians, even those of us who believe that we are young and are never going to get old, to think about that time.”

Jordan also pointed to the need for greater financial literacy among Barbadians and commended the financial literacy programme that was rolled out by the Government in 2020.

He said while the Financial Literacy Bureau targeted businesses, Barbadians, in general, could benefit.

“Financial literacy is absolutely critical. We complain from time to time that we go through school and we are not taught how to manage our money. We are taught mathematics, in some cases we are taught accounts, but we’re not really given guidance as to how to manage our own finances – how to manage our finances now and how to plan for the future.

“The financial literacy programme is essential not just for persons who intend to become entrepreneurs. It is crafted for business people but I want to suggest to all of us that financial literacy is a skill and ability, it is a body of knowledge that is necessary for all Barbadians, whether or not you’re going to be involved in business activity, in entrepreneurial activity,” Jordan said.

The St Peter MP suggested that sharing information about money management should be “extended across the board to all Barbadians”.

“We need to understand how to manage our resources now and we need to plan for those retirement years where we can enjoy the facility that the funds we will vote on shortly will be used to construct,” Jordan said as he gave his support to the resolution to provide the funds for the new Geriatric Hospital. (DP)