By: Jhanae Winter

The Bahamian culture is shifting the golden age, to hues of increased labor and lack of resources. Retirement is supposed to be the period in life where all enjoy the fruit of their labour, but many Bahamians are not afforded this luxury. 

The societal perspective of retirement in The Bahamas can be considered as semi-retirement. There will still be some aspects of working. Some are working with the same tenacity before retirement while others turn to slower pace jobs that are not as strenuous or laborious. 

For several reasons, Bahamians do not retire, mainly because they can’t. Or more precisely they do not have the financial capacity to do so and are forced to disregard their retirement dreams.

What happens is some people become ‘prisoners' to the businesses they are involved with. 

Some also use their retirement period to establish their own business, because they did not have the ability to do so while working for another, likewise some use this opportunity to join new business ventures. 

So the hustle and bustle of their careers days don’t stop. 

One of the major reasons for this is money. Prior to the pandemic with a growing economy and more Bahamians employed, The Bahamas remained an expensive place for its own people to live. To simply eat, have shelter, transportation and clothes, basic human needs, was hard to maintain with a steady paycheck. On top of that, there are various utility bills, fees and tuition, child/children expenses, emergencies and the list can go on. 

However, the pandemic made some situations worse than before. Those who were struggling to provide for their family now, were left vulnerable to the impact of the virus. 

Data proved that over 50, 000 Bahamians were unemployed in 2020.

The numbers would have decreased since the country began shifting to some form of normalcy, but there are still many without jobs. 

With no employment benefits, NIB contribution to claim, pension benefits or retirement fund, where does this leave the state of the people. 

According to Colina Financial Advisors Ltd. the average Bahamian does not have $1,000 in savings.

So will Bahamians work until they can't work anymore? Can the average Bahamain really afford to enjoy their life in their own country? Will they be able to experience luxury, peace, quiet and less stress all while still having their needs met?

Speaking with Colina Financial Advisors Ltd. Investment Manager, Tiffany Smith, believes all of this is possible. 

“The average Bahamian can afford to enjoy life, it just takes some discipline. I will say that our cost of living is extremely high, which makes it seem difficult to save. Food, housing and electricity are major expenses in our country. However, if you make a budget and minimize your expenses and debt levels, it is easier to save towards your retirement goals and enjoy life at the same time,” she said. 

Understanding the climate the world is in, this piece is sensitive to the topics of finances and retirement. Many people are still struggling to make ends meet everyday or are living paycheck to paycheck. Therefore, savings and retirement are far from their minds. 

However, for those who can, Smith still stresses the importance of not waiting until the last minute to save for retirement. 

“Usually we recommend the earliest you start saving for retirement is when you start working. Should it be ideally age 21. A Lot of people don't start saving for retirement until they are five years away from retiring, unfortunately. The earlier you start the better, because it allows you to save more”.

With saving, this allows all to enjoy the life they truly want to live. In particular after leaving a steady income, savings or having a retirement fund gives one the ability to still provide for themselves. 

Besides finances there is another reason older Bahamians remain working, even past 65. 

Within the topic of retirement there is another issue that presents itself. Culturally, many Bahamians work in their 60s and some 70s. Aside from the reasons already mentioned in this article, another is the perspective older Bahamians have of younger Bahamians in the workforce. 

The mentality the older generation have, is that some younger Bahamians aren't prepared to lead effectively in the positions older Bahamains currently hold. 

This seems to play a significant role as to why the workforce is filled with persons of such a high age. So another issue here is Bahamains might want to retire but perceive they do not have adequate younger replacement, thus they remain working. 

Finally, there exist the issues of independence. For so long these Bahamians have work and toil for the life they live and are comfortable with the financial payoff. However, relying on pension or the government, is an idea many never want to experience. 

Therefore, they keep working to maintain the lifestyle they are accustomed to living for as long as possible, especially if they do not have any investments or trust fund. 

Along with this, some Bahamians simply loved the idea of working. For many growing up as a child working was something they were accustomed to. Some bahamians would express they had jobs as early as 10 or 12 years of age. 

The concept of not working can feel boring and too still to some. They want to stay active and keep their mind working. The fear of “getting old” begans of creep in and some try to fight it as long as they can. 

Nevertheless, for young and all the predominant reasons for Bahamians semi-retiring is due to lack of finances to sustain them for the additional 20-25 years of their life. 

This is why if you want to fully retire, you should start saving today!