Finance Minister Davendranath Tancoo says the National Insurance System is currently paying out more in benefits than it is collecting in contributions.
Speaking during the T&T Stock Exchange’s ‘Capital Markets and Investor Conference’ on Friday, he reiterated his warning to the population that the National Insurance Fund could run dry by 2033 if urgent reform is not implemented.
“Within eight years, the fund that supports tens of thousands of our retirees could be empty. That is unacceptable. This government will not, under any circumstances, allow that to happen.”
The Finance Minister noted that the reality is the fund continues to be drawn down each year to cover the gap, underscoring the government’s decision to raise contribution rates from next year. He acknowledged that increasing the rates was not an “easy decision.”
“Someone had to make the hard decisions to protect the vulnerable, and we did. That is why we are implementing a 3% increase in contribution rates in January 2026, followed by another 3% in January 2027, and a gradual increase in the retirement age beginning in 2028.”
The problem, he explained, stems from an ageing population.
“In 1980, only about 5% of our citizens were aged 65 or older. Today, that number stands at over 11%. By the year 2060, it is expected to more than double to 26%. Think carefully about what that means. In the year 2000, we had about 10 working-aged people for every senior citizen. By 2030, just five years from now, that ratio will fall to 4 to 1. By 2060, it will be 2 to 1. Two workers supporting every retiree. That is not a distant concern.”
The Minister emphasised the importance of citizens taking charge of their financial futures.
“What we need is not more dependence. What we need is more participation, more people investing, more people saving, more people building wealth for their own future. This, my friends and my valued stakeholders, is where you come in. This is where the capital market becomes absolutely essential because the answer to our national challenge cannot be more government spending. The real solution is more citizen investment, more wealth creation, more participation in the economy.”
Pointing to the capital market as a key solution to the crisis, he mentioned two initiatives in the recent budget presentation, namely a TT$1 billion National Investment Fund Bond in fiscal 2026, and a State-sponsored Real Estate Investment Trust.
“Shares in this Trust will be listed on the Trinidad and Tobago Stock Exchange, giving every citizen, every pension fund, and every institution the opportunity to own a direct stake in these valuable assets and earn dividends from them.”
He said the TT$1 billion National Investment Fund Bond is backed by shares in First Citizens Group Financial Holdings and will offer citizens and institutions a safe, tax-free investment opportunity.