By JADE RUSSELL

Tribune Staff Reporter

jrussell@tribunemedia.net

VETERAN unionist and former director of labour John Pinder said retirement at 65 or 67 should not be mandatory, arguing that the decision should be a personal choice based on an individual's health and financial circumstances.

He also called for the government to introduce a livable wage of at least $500 a week to help families cope with the rising cost of living, arguing that employers would need government assistance to avoid passing higher wage costs on to consumers.

His comments come as the government considers raising the retirement age as part of efforts to strengthen the long-term sustainability of the National Insurance Board (NIB).

Public Service Minister Pia Glover-Rolle last week revealed at the Exuma Business Outlook that raising the minimum retirement age from 60 to 62 and increasing the retirement age for private-sector workers from 65 to 67 were the preferred options under consideration.

The proposed changes are intended to ease pressure on NIB by addressing the cost of pension payments and helping to ensure the Fund remains sustainable.

"Some people can't wait to get 65 to they could hurry up retire. Then there's some persons who financially probably can benefit from waiting to 67," Mr Pinder said.

"Especially civil servants, a lot of times they don't qualify for mortgages until the late 40s, early 50s, and so it gives them an opportunity to finish paying a mortgage probably at 65."

NIB's financial sustainability has been a longstanding concern, with its reserves coming under pressure as benefit payments outpace income from contributions and investments.

The Board's 11th Actuarial Review, based on an assessment conducted in 2018, warned that the Fund's reserves could be depleted by 2028 if reforms were not implemented. The review found that annual expenditure had exceeded income from contributions and investment earnings since 2016, forcing NIB to draw on its reserves to pay benefits.

Mrs Glover-Rolle has also acknowledged that retired workers returning to employment and collecting both a pension and a salary have contributed to the pressure on the Fund. She said the proposed retirement-age changes would be discussed through the National Tripartite Council, which represents the government, employers and employees.

Mr Pinder said he believed NIB's funds had been poorly managed, but argued that more preventative measures were also needed to reduce the number of Bahamians relying on the social security system because of health problems.

He called for greater access to affordable healthy food, exercise programmes and lifestyle interventions to help people maintain better health.

Meanwhile, the government is also considering further increases to the minimum wage, which was last raised from $210 to $260 a week on January 1, 2023.

Mrs Glover-Rolle told the Exuma Business Outlook that the National Tripartite Council had begun reviewing the minimum wage and was considering establishing a wage-setting council to recommend future increases.