Bridgetown
Employment in Barbados could come to a standstill within the next two years while increased taxes could follow as a result of population changes.
This predication came from Richard Nunez, consultant actuary with the National Insurance Scheme (NIS), who says this was partially due to the constant rise in the cost of living and the increasing number of pensioners.
"What basically is happening is that the workforce is reducing and will reduce slowing, and with the high unemployment we have these days, people will not think that is actually going to happen but it will.The Barbados workforce is going to stall around next year or the year after that", Nunez said.
"After that it will not be growing as it used to grow before. At the same time the number of retirees is increasing and it is going to be evenually twice as much as what we have today. We therefore has to introduce pension reform in Barbados", says Nunez.
He added that there was likey to be a hike in taxes to ensure adequate reserves in the NIS fund. Nunez stated that Barbados had a rapidly ageing population that will result in fewer contributions to the fund and more dependents in years to come.
Nunez was addressing participants at the Caribbean Limited seminar on Barbados Retirement: NIS and You.
