Minister of Labour Colin Jordan says the Government of Barbados is worried about the dwindling population rate in the country.
This was among the points he made during his Ministerial Statement on Revitalisation of the National Insurance Scheme where it was announced that the pensionable age of 67 would be increased to 67.5 years in 2028 and then 68 in 2034.
In addition, the number of contributions to qualify for a pension will also rise as well as the first age for reduced pension.
Explaining the data, the Minister said: “In 2015 we had almost 3 500 children taking the examination (Barbados Secondary Schools’ Entrance Examination- BSSEE).
“What I am saying is that 11 years ago there were approximately 3 500 people being born. There would have been persons who would have passed in between as well as migration in and out, but approximately 3 500 births in that year.
“In that same year, about 2 900 children were born. That means all things being equal 11 years down the road, there will be 2 900 children taking the exam. Those children go on to become workers and contribute to the National Insurance Scheme. By 2020 rather than 3 500 taking the exam, the number drops to 3 400. Instead of 2 900 births, the number drops to approximately 2 350. We can see the trends.”
It was revealed that in 2022 just over 3 000 children took the BSSEE and 2 273 live births, another drop in birth rate, which has given the Ministry of Labour and Social Security, and by extension the Government, cause for concern.
“We are happy and proud that our people are living longer. We are happy that we live in a society and a country that has provided the standard of living and access to healthcare that has moved us from a life expectancy of 68 years to 78 years. All of the trends tell us that those numbers will continue to rise. At the same time we are concerned about our base,” Jordan said.
“One of the discussions that we must have in the very near future is how do we address this matter of the base; the number of human beings who are contributing to the National Insurance and Social Security Scheme. Even if we got to the point where everyone from the informal sector (the self-employed, workers with flexible hours or people who take on odd jobs) was contributing, the fact that our population is declining and the base of people available to make contributions is declining tells us that we have a challenge beyond non-participation.”
The Minister believes it is fundamental for this generation and for future generations that there is a system of social security as well as a National Insurance Scheme that is well managed and functions well enough for those who will rely on it in their time of need.
It was also announced in the Ministerial Statement that the number of contributions to become eligible for pension will increase from 500 weeks (10 years) to 750 weeks (15 years). This rule will not apply to those who will be 60 years old and above, come January 1, 2024. (JC)
