Jamaicans urged to strengthen retirement planning

Chief of sales and marketing at JN Life Insurance, Othneil Blagrove, is urging Jamaicans to prioritise retirement planning, warning that low pension coverage and rising living costs leave many at risk of financial hardship in their later years.

Blagrove notes that fewer than 20 per cent of Jamaicans are enrolled in an approved retirement scheme, a figure he believes highlights an urgent national challenge. Combined with modest National Insurance Scheme (NIS) benefits and an ageing population, he says Jamaicans must take a more proactive approach to securing their financial future.

“My first advice, especially to those who were minimally impacted by Hurricane Melissa, is to start your retirement planning now, if you haven’t already done so,” he said. “Even if money is tight, putting aside five per cent of your earnings is a start. You need to have something set aside for those years.”

For Jamaicans already contributing to an individual retirement scheme, Blagrove recommends raising contributions where possible to the legal maximum of 20 per cent of earnings.

“Contributing the maximum amount also offers tax benefits,” he noted. “Employees who are part of a pension scheme should increase their contributions to the 20 per cent ceiling where possible, because what you’re currently contributing may not be enough to support you in retirement.”

He cautioned Jamaicans against assuming the NIS will be sufficient.

“The NIS provides a benefit, but it will not give you a comfortable retirement,” he said. “Saving what you can, on top of the allowable 20 per cent, will help supplement your income later.”

While the government increased NIS pensions in 2025, raising weekly old age benefits from $4,200 to $4,620, Mr Blagrove stressed that this still leaves retirees with just above $18,000 per month.

“That cannot sustain someone in retirement,” he stated. “For some people with chronic illnesses, that’s the cost of one month’s medication alone. But you also have food, transportation, bills, so it simply won’t be enough.”

He encouraged Jamaicans without a pension plan to enrol as soon as possible, especially self-employed persons and those in the informal economy who remain largely uncovered.

“Even with ongoing pension reform discussions, many Jamaicans still have no pension and many more will have too little to live on,” he said. “Until auto-enrolment is implemented, self-employed persons should sign up for a private pension plan such as the JN Individual Retirement Scheme, which offers flexible contribution options.”

Blagrove also urged Jamaicans to diversify their savings and investments to protect their retirement funds from inflation and changing interest rates.

“Diversification is one of the most effective tools for protecting long-term wealth,” he explained. “Retirement accounts that include a mix of securities, deposits, and other assets generally perform better than relying on savings alone. Balance your portfolio across low risk and growth-oriented investments and seek advice from qualified financial professionals.”

Beyond retirement savings, he emphasised the importance of having an emergency fund, especially after Jamaica’s experiences with severe weather events in recent years.

“Hurricanes over the past two years have wiped out the savings of many Jamaicans,” he said. “It’s best to have three to six months of expenses set aside to protect your retirement savings. And resist the urge to dip into your savings unless it’s necessary.”

He also highlighted financial literacy as a key barrier to retirement readiness.

“Many Jamaicans still struggle with concepts like compound interest, diversification, and long-term planning,” he said. “This affects how they manage debt and whether they take advantage of financial products that can support retirement.”

Blagrove encouraged Jamaicans to use digital tools to educate themselves and pointed to initiatives from the JN Foundation that offer financial literacy support, including training in retirement planning.

“We have access to smartphones and information at our fingertips,” he said. “I urge Jamaicans to empower themselves with financial knowledge and begin planning for retirement.”