The world in general is experiencing a dramatic increase in life expectancy. People are living longer and ageing of the population comes about as longevity persists. This ageing causes a shift in the structure of a population and as a result thereof adjustments are needed that will cushion the effects of this shift. Implications will arise in key areas such as Social Security, Health Care and Welfare, etc. and St. Maarten is no exception to the aforementioned.
The Ministry of Public Health, Social Development and Labor is searching vigorously for incentives to cushion the effects of the ageing of the population as well as enhance the financial standing of the elderly. The Ministry has commissioned a Feasibility Study on Strengthening the 2nd and 3rd layer pensions of which the goal is to determine the (social-economic) feasibility of a mandatory pension layer for St. Maarten.
"It is important for us to guarantee a comfortable life for our retirees, and most importantly to make sure our resources are strong for those that reach pensionable age," said Minister of Public Health Social Development & Labor, Cornelius De Weever. "The feasibility study will further guide us on the implementation and the way forward regarding our pension system."
The feasibility study will be carried out by Buck Consultant N.V. This consultancy is based in the Dutch Caribbean with the relevant Actuary, Risk Management and Research expertise as well as extensive knowledge of the current pension system. The scope of the work will be carried out over the coming months and will cover contacting internal as well as external stakeholders.
The effects of the ageing of the population and the problems that accompany such are already emerging and the social-economic implications are major, as it is evident that the support for the elderly cannot be solely based on the current state pension ("AOV") nor on the financial assistance ("Onderstand") provided by the Government. Ageing of the population will eventually exhaust the aforementioned resources if it is not managed responsibly. By increasing the AOV and indexing the financial assistance there will be some relief in the near future.