No nest egg, no future - 80 per cent of Jamaicans have no pension plan

For many Jamaicans, the thought of saving for retirement feels like a distant dream -- one that rent, school fees, light bills, and daily survival keep pushing further away.

"Mi cyaah save fi pension when mi nuh know when mi a guh mek another money," says Portmore plumber Garfield Smith.

"Mi haffi deal wid mi immediate needs first, and den di money just done. It rough," added the self-employed man.

However, Sanya Goffe, president of the Pension Industry Association of Jamaica (PIAJ), said that while it may feel impossible for persons who are barely getting by to save for retirement, the reality is that failing to save could mean facing poverty in old age.

"Retirement is expensive," Goffe said.

"You may need up to 80 per cent of your current income to live comfortably. If you don't start saving now, you could face a future where working in your 70s is your only option," she added.

For Stacey Ranger, saving towards her retirement is easier said than done. The 40-year-old security officer and mother of three knows the struggle first-hand.

"I don't earn enough to save for a pension. I would consider contributing to a pension plan because you're not going to stay young forever. When you get older, you are going to need help," she said.

However, Ranger said it is difficult for her to save even a small amount consistently.

"When you don't have anything to save, how are you going to save? When you get paid and you have your bills, it is very hard. Sometimes you have so much to do with the small amount you get that you can't pinch it any further. If you can find extra work, that would be an extra income, but that doesn't always work. I work 12 hours a day and have to go home to take care of my kids. I can't do another job right now," she said.

Like Ranger, many Jamaicans feel overwhelmed by the daily cost of living. However, the experts said that waiting to start planning for retirement will only make things worse. In fact, the PIAJ warns that nearly 80 per cent of Jamaicans have no pension plan. This, it said, could mean that, in old age, many people could be struggling to afford basic needs.

Goffe said that it is important for everyone to start saving for retirement, even if they can only put aside a small amount.

"It's not about how much you save but about building the habit," the PIAJ president said.

Garfield Smith explained the challenge he faces in saving for a pension.

"A hustle mi hustle and mi money nuh consistent. Mi cyaah plan when mi a guh get a call. So, when mi mek di money, mi waah save fi pension but mi nuh know when mi a guh mek another money."

For self-employed Jamaicans like Smith, saving for retirement is even harder because they don't have an employer helping them. But Goffe says it's still possible.

"Self-employed persons should consider setting up a private pension plan. You won't have employer contributions, but you'll still benefit from tax relief and the chance to build retirement security. No two pension plans are the same. Each one is crafted based on the person's unique situation. Financial advisers can help persons like Garfield plan for the future," Goffe said.