Old age pensions are the topic of global conversations about rising fears that as people age, those schemes can’t be sustained. It is referred to as the Pensions Crisis.
From as early as 1999, British economist John Eatwell spoke to The Anatomy of the Pensions Crisis in an economic survey of Europe.
A 2022 Harvard Business Review article said, according to UN reports, two-thirds of the global population lives in countries with below-replacement fertility rates, while average lifespans continued to grow.
That meant many populations were rapidly ageing, and would begin to shrink, it said.
This is also a looming issue for the TT government. The Central Statistical Office, in its June 30, 2022 mid-year population report, estimated TT’s 65-plus population at 122,412.
One provision for people over 65 in TT is the Senior Citizens’ Pension.
The Ministry of Social Development and Family Services’ website says the pension is a grant accessible to citizens over 65, who must have lived in the country for 50 years and have a monthly income not exceeding $5,500.
To receive the grant, one must fill out an application form, then attend an age-assessment meeting with the Local Public Assistance Board. The ministry’s welfare officers do a means test for eligibility for the grant. The board then decides on the application.
Minister: Government pension not for all
Social Development and Family Services Minister Donna Cox said to give every citizen who turned 65 a pension would be unsustainable.
“How sustainable would it be if we just gave everyone who wanted a pension one?”
There are 105,000 people receiving a pension from the ministry, she said.
And there are more to come. Through its centenarian programme the ministry has recognised that many people are living longer. This is a factor in the sustainability of the pension fund.
The Government aims to continue taking care of TT’s senior citizens, but thinks some people might believe they are entitled to it.
“That is not the case. The pension is intended for people who are vulnerable. You are finding people applying for pension and are people who are landowners, homeowners and wealthy but feel they should still receive that $3,500,” she said.
But in fact, “Everything that comes out of the Ministry of Social Development and Family Services is for the vulnerable. It is not for people who have.”
“We know there are many people on the system that should not be there,” Cox added.
[caption id="attachment_1008421" align="alignnone" width="861"] Social Development and Family Services Minister Donna Cox says there were many people who felt they were entitled to the senior citizens pension. Photo by Sureash Cholai[/caption]
The ministry was hoping to correct this through its ongoing digitalisation efforts.
The grant is targeted at widows, domestic helpers, single mothers and people who were not employed throughout their lives.
“If you are receiving the National Insurance Scheme (NIS) and it is the same amount as the old age pension, then you do not get it.
