MORE Jamaicans are taking retirement planning into their own hands as individual retirement schemes continue to attract growing numbers of savers, according to the latest data from the Financial Services Commission (FSC).

Industry officials say changing work patterns are helping to drive the shift. For decades, retirement planning was closely tied to the workplace. Employees built their retirement savings by remaining with one employer long enough to qualify for a pension. Today, that model is changing. As more Jamaicans switch jobs, work on contract or become self-employed, retirement planning is increasingly becoming an individual’s responsibility rather than an employer’s. The shift is already showing up in the numbers. While the bulk of the industry’s asset base still sits with traditional employer plans, holding $755.8 billion in assets compared with $90.7 billion in retirement schemes as at December 2025, it is individual retirement plans that are attracting the fastest growth in new members.

Historical FSC data compiled by Sagicor Jamaica show that membership in approved retirement schemes has climbed from just 7,917 people in 2010 to 90,412 by the end of 2025. By comparison, membership in employer-sponsored superannuation funds has grown more modestly, from 67,441 to 84,801 over the same period.

“The traditional model of a long-tenured employee accumulating benefits in a single employer-sponsored fund over a 30-year career is simply less common now,” said Sanya Goffe, president of the Pension Industry Association of Jamaica (PIAJ). “More Jamaicans are self-employed, contracted, or moving between jobs more frequently than a generation ago, and an individual retirement scheme travels with the saver in a way an employer-sponsored plan simply does not.”

As workers move more frequently between employers and between traditional employment, contract work and self-employment, many can no longer rely on a single employer-sponsored pension to provide continuous retirement coverage. Individual retirement schemes allow savers to continue building retirement savings regardless of where they work. The PIAJ has advocated for reforms that are designed with this more mobile, less traditionally employed workforce in mind. At the same time, the changing labour market is also influencing employers. The number of active superannuation funds has declined from 501 in 2008 to 343 by the end of 2025, which, according to PIAJ, reflects years of consolidation, mergers and plan closures. The costs and administrative obligations involved in establishing employer-sponsored pension plans have also been cited as a factor that is discouraging many small and medium-sized businesses from creating new funds.

“Setting up and maintaining an employer-sponsored superannuation fund carries real fixed costs and administrative obligations for the sponsoring employer, which has made many smaller and mid-sized businesses reluctant to establish one, particularly against a backdrop of rising compliance expectations,” she said.

While employers that choose not to sponsor pension funds may reduce their administrative burden, Goffe cautioned that this should not be interpreted as a reason to step away from providing retirement benefits. She argued that a well-designed pension plan remains an important tool for attracting and retaining employees. For workers, meanwhile, the shift to individual retirement schemes offers greater portability and control over their savings. However, it also places more responsibility on individuals to contribute consistently, increasing the risk that those with irregular incomes or inconsistent saving habits could ultimately save too little for retirement.

“Without the structure an employer plan imposes specifically, automatic payroll deductions, employer matching, and a fixed contribution schedule, there is a real risk of under-saving, particularly among those in variable or informal income situations,” Goffe told the Jamaica Observer.

Goffe’s warning raises an obvious question: Are rising living costs already causing Jamaicans to save less for retirement? To determine whether that concern is being reflected in actual saving behaviour, the Business Observer turned to Sagicor Jamaica, one of the country’s largest pension providers. Despite several years of elevated inflation and higher household expenses, the company said it has not observed any material change in contribution patterns among clients already saving through individual retirement schemes.

“From our own portfolio of clients, we have seen no material change in contribution patterns,” stated Sagicor.

The response suggests many contributors have continued to prioritise retirement savings despite mounting financial pressures. As Jamaica’s labour market continues to evolve, the PIAJ expects retirement planning in Jamaica to become increasingly centred on portable savings products designed for contractors, self-employed workers, and others outside the traditional employer-employee relationship. It believes the industry’s challenge will be ensuring those workers not only have access to retirement products but also the financial education needed to save enough for life after work.