When is my Rainy-day?

Growing up in Jamaica, as a Generation X’er, we are told “tek yuh book”, “get ah gud wuk” and “save fi ah rainy-day”. But it would seem these are no longer being told to the children of the 90’s. The flossing, bling and hype have become the order of the day aided and abetted by the internet and the advent of social media.

Well, actually I think it all started with remittances and the “barrel-babies”. Why go to school or get a job when money and kicks ah cum from foreign? It seems a no-brainer to me at least. And from a practical and objective perspective it should make sense to the reasonable person. Of course one would have to park the usual sensibilities for a minute or two.

Now, arising this change in behavior are the issues on reduction in the contributions to the National Insurance Scheme. This has been fueling growing concerns about its solvency and future viability. There has also been concerns about the number of working Jamaicans that are actively contributing to a private pension plan…or in other words “save fi ah rainy-day”. That being, when they are no longer able to work. The last published data, from the Financial Services Commission as at September 2015, is that a mere 8.92% of Employed Labour Force [link] are covered by a private pension arrangement.

So, if there is no change to the remittance and “barrel-babies” culture, there will be precious very savings for the proverbial “rainy-day”.