Growth & Jobs | Sterling calls for a new retirement mindset

As people across the Caribbean live longer and healthier lives, the traditional mantra of ‘learn, earn, retire’ is proving increasingly outdated and insufficient. With life expectancy on the rise and regional governments expressing concern about ageing populations, financial security in later years has become an urgent and growing challenge.

Sterling Asset Management Ltd is calling for a shift in how Jamaicans and, to a wider extent, Caribbean residents approach retirement, encouraging individuals to rethink their savings strategies, extend their planning horizons, and adopt smarter, more flexible financial playbooks that can sustain them well beyond the limits of old retirement models.

“Caribbean citizens can no longer rely on the old idea of learning, earning, and then quietly retiring,” says Charles Ross, president and CEO of Sterling Asset Management. “Many of us are living well into our 80s and 90s, often with decades of active, meaningful living ahead. To fund those years, we need to build stronger, smarter financial foundations.”

Derek Osborne, partner and senior actuary at TELUS International Health Bahamas, added that the data paints a sobering picture across the region. In some territories, such as Jamaica, as little as 11 per cent of the working population is covered by approved pension plans, while the IMF has cautioned that reserves in several Caribbean social security systems could face depletion in the coming years. “None of the national insurance systems or pension plans are designed to fully replace your income in retirement,” Osborne said. “The idea is to have three sources of retirement income: government benefits, employer pensions, and personal savings. If one of those is weak or missing, you must strengthen the others yourself.”

GENERATIONAL SHIFTS

Osborne encourages Caribbean residents to start early, set clear financial goals, and review them regularly. “Even small amounts, invested consistently, can grow significantly over time. Revisit your goals every few years and adjust for life changes, market shifts, and inflation,” he said. He also emphasised the importance of preserving long-term savings, noting that early withdrawals can significantly undermine retirement security.

Derek Jones, chairman of the board at Sterling Investments Ltd, echoed that sentiment with lessons from his own experience. “Save early and save often,” he advised. “Even when cash flow feels tight, discipline pays off. And invest wisely, let your money work for you. What buys a house today might only buy a vacation in 30 years, if you don’t guard against inflation.”

Jones reflected on generational shifts in investment habits across the Caribbean, noting that older generations often leaned heavily on real estate because of distrust of financial markets. “For many years, real estate was the go-to. You buy a piece of land and hold it. But times have changed. While real estate still has value, it requires active management. At some point, you may want to shift into investments that are less hands-on and more liquid.”

Ross also emphasised the importance of strategic, diversified investment across the region. “Starting early makes an enormous difference. Even small differences in return, over decades, add up to life-changing sums,” he said.

He added that diversification should be tailored to a person’s life stage, with a healthy mix of fixed income, equities, and international exposure to reduce risk and increase long-term resilience. “We’re seeing a growing number of people entering retirement age without enough to sustain their lifestyle,” Ross said. “Whether you’re 25 or 55, it’s never too early, or too late, to take control of your financial future. The key is to be deliberate, disciplined, and proactive.”

As the Caribbean’s population continues to age, Sterling Asset Management remains committed to equipping investors with the knowledge, tools, and strategies they need to thrive well beyond traditional retirement age. “Retirement isn’t the end of the road; it’s the beginning of a new journey. Let’s make sure we’re financially ready for it,” Ross concluded.