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DSS Says Longevity Weighing on Social Security Fund

by: - February 3, 2020
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Deputy Director of the Dominica Social Security, Mr. Augustus Etienne

Dominica has been praised for providing the perfect environment for longevity with the island boasting at least a dozen centenarians the oldest having died at 128.

While that is great news for those who wish to live long healthy lives, it’s not so great for the Dominica Social Security.

The administrators are saying that Dominica’s aging population has been drawing heavily from its resources.

Speaking on Vibes Radio, Deputy Director of the Social Security, Augustus Etienne revealed that an actuary- someone who deals with the measurement and management of risk and uncertainty -has put into perspective what that means for the social security fund.

He explained, “More and more people are coming of age to receive their pensions and when they get there, they live long. It is not uncommon to find persons in receipt of pensions from age 60 and they are 100+ and they have to continue getting for as long as they live. People are aging much better now.”

Etienne adds, “A person lives to retirement and then 10, 20, 30 years after retirement before they pass.”

He says a population that is aging well means that the DSS has to take into consideration several factors that will impact the fund’s sustainability including the age profile of the population, those approaching 60.

“When you start paying someone a pension at 60, how long do we have to pay them before they pass, how long do we have to pay commitments to their dependents…”

He gave this as reason for the decision to increase the pensionable age from 60 to 65.

The age has been gradually increasing by six months for years. This year it settles at 65.