The nation’s ageing population are now grappling with the harsh consequences of failing to plan for their retirement years.
According to the president of the Barbados Association of Retired Persons (BARP), Marilyn Rice-Bowen, a canvas of their membership has highlighted concerns about insufficient pension funds for many retirees, with some receiving less than $1 000 per month as inflation eats into their pensions.
“And what a lot, quite a few seniors always say to us [is] if they only knew… and then there were situations where people would say to us that they didn’t expect to live to 60, 65. When they were 26 and 28, they didn’t expect to live to 60 and 65, so they never planned. In addition to that, there are people who just simply didn’t plan for retirement,” she said over the weekend at the launch of BARP’s Towards 2050 conference which will be held on April 6.
Rice-Bowen said many seniors had not adequately prepared for retirement, leading to financial strain in their later years.
“As we speak now of the 40s, the 40s to 59s, that’s why it’s so important that we are driving them. We’re not going to bully but we are going to drive them, we’re going to encourage them to plan. That’s why it’s so important they plan because if they do not plan, they’re going to find themselves in a really strange and very uncomfortable space when they reach our age, my age.”
Her comments were supported by Elder Affairs Minister Kirk Humphrey, who underscored the importance of incentivising retirement planning but emphasised the need for individual responsibility.
“But I do think that the whole planning process requires everybody. I think people need to plan individually. And I do think it makes sense to incentivise, from the public sector standpoint, persons to be able to do it. It just makes sense,” he said. “I think you have to find a way to balance what you can afford financially and what society needs to be able to afford. But I anticipate and I look forward to the day when we’re in a position to do something like that again.”
Rice-Bowen stressed the importance of planning and urged individuals to attend seminars and seek guidance on retirement planning, emphasising the need for proactive financial management.
“So, rather than say, ‘we can wait to see if the government gives me a tax incentive for the rebate on pension plans’, if it’s not happening, go ahead, and put your money in your pension plan because you will be the beneficiary. If it does happen along the way, well, it’s gravy. But do not sit and wait for the frills. Get involved and do it yourself,” she urged.
Meanwhile, Humphrey said the social services in Barbados have had to evolve as a result of the challenges posed by an ageing population.
According to him, Barbados has been witnessing a notable increase in the number of older individuals seeking support from welfare services, adding that his Ministry of People’s Empowerment and Elder Affairs, which is responsible for social services on the island, is aware of the need for proactive measures to address this trend.
“The shifting, the transition in society is impacting all the delivery of social services. I think the other thing that we have to be mindful of in social services is that the cost of caring for a child is not the same as the cost of caring for an older person,” he said.
“If you’re caring for a senior person, it costs maybe two or three times as much. We’re going to anticipate that even our budget has to increase because caring for older persons is a lot more expensive. The capacity to care is going to shift.”
(RG)
