As the world marked International Day of Older Persons on Tuesday, the hardships faced by seniors was a topic of discussion again. While the country is blessed with at least a General Elderly Provision AOV pension, the amount is far too low for most to survive on, especially many immigrants who did not spend their whole adult lives here and thus receive even less.
Saying it should be increased is easy, but funds managed by Social and Health Insurance SZV are coming under pressure. While the population remains relatively young, an ageing process due to a declining birth rate and longer lives made possible by medical advances has unmistakably started and will no doubt impact the future.
It means fewer active contributors and more recipients. One does not have to be a mathematician to figure out the long-term result.
In response, the retirement age was already increased twice in the recent past, from 60 to 62 and then to 65. In the European part of the kingdom it has meanwhile been set at 67, but the Dutch Caribbean countries don’t favour this because of the warm weather, which takes its toll.
As a matter of fact, in the Netherlands time served on the islands by officials used to be known as “Tropenjaren” (Tropics Years), which counted extra. With air-conditioning this is not such a big problem nowadays certainly for those lucky enough to work indoors, but it continues to be a factor to consider.
Other than indexation or cost-of-living adjustment, any plans to structurally raise the AOV at this point will have to be financed either through higher premiums or another age limit hike. That may not be what people want to hear, but it’s currently St. Maarten’s harsh reality.
