EDITORIAL
Medical advances in the last hundred years have saved countless lives. And when it comes to extending and preserving life, we are indeed fortunate to live in a time when we can access the best treatment possible.
One by-product of this advancement are the increasingly older populations countries around the world experience. While that is good for society to see the aged actively living their lives, and providing valuable contributions to those around them, it has presented a serious challenge to social security provisions, which also has to factor a decline in birth rates. Dealing with the matter therefore will necessitate an aggressive education of the young and middle-aged, so they can best sustain standards of living, quality of life and execute the best preparations for their golden years.
An aged and persistently ageing population is a reality. According to the United Nations, which quotes information from the World Population Prospects: the 2017 Revision, “the number of older persons – those aged 60 years or over – is expected to more than double by 2050 and to more than triple by 2100, rising from 962 million globally in 2017 to 2.1 billion in 2050 and 3.1 billion in 2100. Globally, population aged 60 or over is growing faster than all younger age groups”. Less developed countries are seeing even higher numbers of older persons and it is estimated that by 2050, nearly 80 per cent of this population will live in those regions. In addition to that, the other worldwide trend is that of women having fewer babies. Barbados’ ranking is 11.7 births out of 1000 – a consistent decline for over 10 years – which puts us below the accepted replacement level of 2.1.
With not many children being born to eventually replace retirees in the workforce, the result is a shortfall of contributions to national insurance, an institution many elderly Barbadians depend on for wherewithal. It is the individuals who will make it to their golden years in the future who need the best advice now on how to manage their budgets and financial portfolios to achieve maximum results.
With a life expectancy of 81 for women and 76 for men, education will be critical in addressing this problem, putting the onus on individuals to provide more for their pensions and retirement. To that end, we propose that might best be served through town hall meetings, with collaboration between Government and the private sector, and community outreach programmes to be held around the island for those most affected by pension issues – persons close to retirement, those already in retirement and even younger adults.
It is also necessary to stress that it is indeed feasible to start saving for retirement at a later age. The key is looking at one's budget, saving an agreed upon amount, and sticking to it religiously, and if that is not entirely possible right now, at least committing to a time when to start saving. What can also happen is that persons can turn a hobby into a money-making venture, earning valuable income on the side that can be apportioned to retirement savings. In addition, after formal retirement persons may work longer to secure their financial future, or use existing assets like homes to sell or rent out to make more money.
There are enough warning signs for those in that younger to middle-aged demographic to make the critical decisions now that will redound to their benefit in the future.