Today, circumstances require many of us to remain so focused on making ends meet that we have no time, or inclination, to consider how we will make do in our golden years. Having to accept a much-reduced standard of living in one’s later years is likely to be quite disconcerting. Are real efforts being made to address this issue on an individual, corporate or national level?
Upon retirement it would be ideal if individuals could maintain something close to their standard of living, by drawing on their savings, their pension system and their national insurance (Social Security). Anguillians currently feel that they are severely challenged in respect of the first of these. The cost of living in Anguilla is considered to be high. While this has been the case for decades, the recent increases in fees, which affect the cost of water, electricity, health services, importation of goods and travel have been exacerbated. Juxtaposed against the fact that many individuals have not received a pay increase in more than a decade, the situation becomes alarming for many. Numerous persons have suffered pay cuts in the last decade, rather than pay increases. In these circumstances, for many persons any opportunity for saving has been totally eroded.
Covid-19 has resulted in many persons being jobless or underemployed. These persons have had to resort to using any savings they had to attend to their needs and those of their families, while they wait to regain employment. It is very likely that many persons will not have significant savings to draw on when they attain their golden years.
Generally, persons employed in the public sector are privileged to be the beneficiary of a pension scheme. Since 2004 public officers have been required to contribute to a pension scheme, with the Government of Anguilla matching their contributions. Once the Public Service Pension Fund is properly managed public officers are assured of a monthly pension payment during their retirement years. Whilst this must be welcomed, in the absence of a salary increase in recent years it is anticipated that monthly pension payments will not come close to adequately addressing pensioners’ needs during their retirement years.
Inadequate though it may be, at least public officers will receive a monthly sum to assist with their living costs. But, what of others? A significant portion of Anguilla’s workforce is employed in the Hospitality Sector. These persons, generally, have no pension system that will ensure they receive retirement benefits when they achieve the age of retirement. The Public Sector is also staffed by a significant number of persons who do not contribute to, and will therefore not benefit from, the Public Service Pension Fund. These persons are described as wage workers and do not occupy pensionable offices, despite being employed on what amounts to a permanent basis. Currently, hospitality workers and wage-workers employed in the public sector are likely to face very hopeless prospects in their sunset years.
It appears that the singular hope for many persons, in their waning years, will be our Social Security System. Mr. James Ronald Webster is often praised for his vision and perseverance in implementing Anguilla’s Social Security System, in the face of strong opposition. The descendants of those who stood in opposition to the introduction of Social Security in Anguilla are likely to be the ones most grateful for its introduction. For these persons savings are very likely to be non-existent, or very limited, and many are unlikely to be the beneficiaries of a pension scheme unless certain radical changes are implemented shortly.
For many of us, in the face of reduced, depleted or nonexistent savings, and no applicable pension system, it is incumbent that we ensure that social security payments are made so that the appropriate benefits are paid when they become due. The Social Security System, which has come to the rescue of many persons following Hurricane Irma and during the Covid-19 Pandemic, must be carefully nurtured and protected, as it is likely to be the only source of funds available to many persons, in their waning years. While it is important that we live in the moment we must not fail to plan for the future, lest our later years be a pale reflection of our earlier years.
