There is an uncomfortable truth unfolding for many countries in the region: a declining population. The video highlights this growing concern by referencing data from Jamaica, but the issues raised apply to many countries, including Barbados.
It seems the prospect of bringing children into the world no longer feels exciting or feasible for many families. Added to this is the ongoing drain on the population caused by the emigration of trained professionals, creating a double whammy effect.
As the situation continues to unfold, there are serious implications for national tax bases and, by extension, social security funds, both of which threaten the quality of life. Highlighted in this space many times is the current threat to our National Insurance Social Security Service (NISSS), formerly the NIS. For anyone following developments in recent years, it is evident that our governments are unsure how to address the problem. The strategy has largely been to increase eligibility ages and contribution rates, which is not a sustainable option.
Barbadian workers already pay one of the highest NISSS contribution rates in the region at 11%, with eligibility for pensions sliding north of age 67 with age 70 likely to become the new eligibility target in the near future. The next NISSS Actuarial Review should make for interesting reading.
Another major decision- pending for several years-is whether to boost the local population through immigration.
Uneasy lies the head that wears a crown – William Shakespeare
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