NIB planning for pension bomb Real estate, foreign equity to shore up national insurance fund From 2015 to 2020, 127,000 people between the ages of 55 to 59 will become eligible for pensions under the National Insurance (NI) system. This is in addition to the 77,000 that are already in receipt of the benefit. The National Insurance Board (NIB)—which provided the preceding figures—is aware that these are part of a wider demographic shift which will see the those receiving pensions from the state burgeon while the numbers supporting this aging population will decrease. In it eighth actuarial review, published in September 2012, the NIB projected that the population of this country will grow from 1,317,714 (2010) to 1,431,642 by 2036, a percentage increase of 8.6 per cent. Thereafter, it is expected to decline to 1,341,694 by 2060. The review said, while those 60 and over will number 412,423 in 2060, or 30 per cent of the population, those between 16 and 59, who form the support base of the NI system, will decrease by 18 per cent to 712, 184, down from 871,487 in 2010. The scheme’s contribution income will also be outstripped by its expenditure from the year 2012. There was also a shortfall in assets by $3.3 billion in financial year 2011-2012. However, the review said NIB’s assets will continue to increase, but only until the year 2026-27. Subsequently, the review forecasted that if nothing was done, the NI system funds would be completely depleted by 2039-40, a fact confirmed by chairman, Adrian Bharath in an April 2013 interview with the Business Guardian. [ Click the link to read this article in full guardian.co.tt/news/2014-08-03/nib-planning-pension-bomb ]
Posted on: Sun, 03 Aug 2014 13:30:00 +0000
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