Barbados and the USA have the retirement age set to 67 but there is a difference as it relates to governance of the two social security funds and its transparency.
As of 2025, both Barbados and the United States have made 67 the official age for full social security pension eligibility. From all research it is part of a global decision making process, with countries adjusting retirement ages due to increase life expectancy, a big point of departure is that while age eligibility is the same, the governance and transparency framework of the funds are vastly different. In Barbados up-to-date audits of the National Insurance and Social Security Service (NISSS) is the stark and unacceptable difference between the two funds. Some will explain this is expected because the USA is labelled a First World country and Barbados Third World. How we sell ourselves shot!
In the USA the social security system has to undergo annual independent audits, public reporting, and congressional oversight. In Barbados, although the NIS was restructured into the NISSS in 2024 to modernise and improve governance, the problems that plagued the old system, i.e. delayed financial statements, weak oversight, and inadequate public reporting persist. We hear there is a new NISSS app coming to assist the public, that is something to applaud right?
As stated in this space repeatedly an external audit does more than ‘check the books’, it builds trust and accountability with stakeholders. The NISSS is responsible for handling millions and millions of dollars in contributions from workers and employers, we deserves to know if:
• the money is being managed properly
• it is earning maximum returns, or being spent irresponsibly
• the fund is solvent—or slowly drying up
In the U.S it appears the annual Trustees Reports, verified by independent auditors and made public, attempts to safeguard trust in the social security system. In Barbados, the Auditor General has repeatedly highlighted missing financial reports and poor follow through by the NIS. The new dispensation with the introduction of the NISSS was supposed to address the transparency gap, one year later it seems like business as usual.
The obvious concern if pension payouts continue to exceed contributions and investment returns year after year, the fund will enter a deficit and without corrective action, we have been apprised what will be the result. The NISSS wouldn’t have enough money to pay future pensions in full and pension amounts may be reduced or eligibility increased. As has been done in the past, the government will raise NISSS contributions for workers and employers to keep ship NISSS afloat. The fund on current trajectory will see the retirement age increase to 68 from January 1 in 2034 .
Yet another Barbados government continues to erode public trust and undermine retirement security for the next generation_the blogmaster was careful to exclude the 1 billion burst from the fund in 2018.
In this so-called democracy the citizens which the government serves appear impotent to be able to hold it accountable. What is the recourse for citizens? Who wants to take to the streets with guns and machetes?
The blogmaster invites you to join the discussion.