An increase in the retirement age to between 68 and 72 years and a small hike in the contribution rate of half to one per cent are being recommended to help avert a crisis with the National Insurance Scheme (NIS).
These were put forward by actuary Derek Osborne to avoid the Scheme running out of funds in just over a decade.
Osborne, speaking to the media at the NIS headquarters on Culloden Road, St Michael yesterday, disclosed that other options included raising the first age at which old age pensions are payable anywhere from 62 to 65 years.
He pointed out that the maximum pension payable is now 60 per cent and can be reached after about 36 years of contributions. He suggested that the number of years required to reach 60 per cent be increased to 40 or 45 years. The maximum pension replacement rate could be looked at with the goal of reducing it from 50 per cent to 55 per cent, he added. (CLM)