LICENSED securities dealer Sterling Asset Management Ltd is urging Jamaicans and residents in the wider Caribbean to change their approach to retirement by rethinking their savings strategies; extending planning horizons; and adopting 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.”

Ross offered the advice against the background of regional governments expressing concern about ageing populations and the growing challenge of financial security to those individuals, given the rise in life expectancy.

Derek Osborne, partner and senior actuary at TELUS International Health Bahamas, added that the data paint a sobering picture across the region. In some territories, such as Jamaica, as little as 11 per cent of the working population are covered by approved pension plans, while the International Monetary Fund 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.”

Osborne encouraged 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.

Sterling Investments Ltd Board Chairman Derek Jones 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. 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 due to 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,” he said.

Ross also emphasised the importance of strategic, diversified investments 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.”

“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,” added Ross whose company said it remains committed to equipping investors with the knowledge, tools, and strategies they need to thrive well beyond traditional retirement age.

OSBORNE…the idea is to have three sources of retirement income: government benefits, employer pensions, and personal savings

ROSS… 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 (Photo: Naphtali Junior)