Call to use pensions for national growth

Barbados’ pension system needs reforming strategically to ensure contributions are used both to provide retirement income and drive national development, according to a senior investment official.

While acknowledging challenges within the current system, Vice President of Investment Management Services at Sagicor Asset Management Inc, Dexter Moe, told attendees at a recent investor summit that the focus must now shift to using pension contributions more strategically to support long-term national development.

This approach, according to him, will address future challenges, including economic resilience, social protection, and sustainability.

“I think that [the pension landscape] is evolving. I think we’re all aware of the challenges that exist within that space [and] what we need to be focused on are the solutions as we move forward,” Moe said.

“And how do we utilise… pension contributions for investment in different areas, whether it be sustainability or otherwise, so that we promote the general economic well-being of all.”

He added that reforming pension investment strategies could benefit both contributors and the wider economy by ensuring capital is directed towards productive sectors, including renewable energy, infrastructure, and technology.

“In terms of our social security systems, obviously the whole issue of pension remains very much at the core. So, we certainly look forward to being able to render whatever advice, whether it be through industry consultation, engagement, or otherwise in that regard.”

Moe said retirement security is one of the most pressing challenges facing regional economies.

He suggested public-private collaboration and a proactive approach to reform are key to ensuring pensions not only provide financial security in retirement but contribute to national development today.

He called for the modernisation of pension structures to reflect the current changing workforce and longer lifespans, noting, “Retirement security is a critical societal challenge. The evolving workforce, ageing populations, and economic volatility compel us to rethink pension structures.”

“Modernising national insurance schemes and expanding private pension plans is paramount.”

Moe said the future of pensions requires greater flexibility and transparency to empower individuals to achieve sustainable financial independence.

The Sagicor Investor Summit, hosted at the Hilton Barbados Resort in collaboration with CFA Society Barbados, focused on the future of investment management and included discussions on artificial intelligence, climate finance, and strategic asset allocation.

The summit featured speakers from Ernst & Young, Radix Financial, and the CFA Institute, along with local industry leaders. (SM)