Antigua and Barbuda to discuss national retirement age and pension payment alignment

In a move to effect major labour reforms, the Antigua and Barbuda Cabinet will kick off consultations with various stakeholders to create a national retirement Age, aligning the ages at which social security and government pensions are paid.  

The Cabinet has reportedly reached the conclusion that a uniform retirement age throughout the State would help in better planning and achieving equity among all workers. 

It said while an “early” retirement age of 60 years is still available, opting for it would see a lesser monthly payment compared to that received if retirement is taken at 65 years. 

The attorney general will reportedly inform Parliament about the consensus to which workers and employers agree after the consultation process concludes. 

Reforms in pension ages and payment schedules have become a key necessity since the average lifespan of the people of Antigua and Barbuda is nearing 75 years. 

Attorney General Steadroy Benjamin speaks

Antigua and Barbuda Attorney General and Minister of Labour Steadroy Benjamin told a local media channel that the government will engage with key groups to arrive at a decision.

“All stakeholders, including the Employer’s Federation, the chamber of commerce, unions, and other representative persons in the state determine how, when and by what method we should adopt to put this policy in place. This is so necessary to be consistent in government policies in all aspects of life,” he was cited as saying. 

Prime Minister Gaston Browne, who shared the news about the Cabinet’s imminent talks with stakeholders about the national retirement age, announced in his Budget speech of 2020 that 65 would be the new age of retirement.  

He also said that the rise will put the age in alignment with the pensionable age for social security which was also increased to 65. 

“We have addressed the misalignment between the government retirement age and the Social Security pension age,” he said then.

It was in 2017 that the Antigua and Barbuda government and the Antigua and Barbuda Social Security Board (ABSSB) decided to gradually raise the pensioners’ age of retirement from 60 to 65 by 2025.

What Antigua and Barbuda Social Security Board said in Jan 2025

The ABSSB said at the beginning of 2025 that the last day of 2024 saw the final hike in contribution rates and the conclusion of adjustments to the age of retirement. 

It means starting January 1, 2025, the pensionable age has officially become 65. It puts an end to early retirement options that were initiated under amendments to the Social Security Act nearly a decade ago. 

Following the gradual rise that started in 2016, the contribution rates will cap at 15 per cent for government employees and 16 per cent for their counterparts in the private sector, one report said. 

“The contribution rate was increased in 2016 by 2 per cent in one go and thereafter half a per cent, equally divisible, which is half and quarter and quarter to the employer-employee,” David Matthias, director, ABSSB, told a news outlet.

He said December 31, 2024, marked the last day anyone could apply for an early-age pension. From now on, everyone must reach 65 to make an application. 

Matthias said the reason for setting up the early retirement age and graduating the age was to enable people to transition from “what would have been culturally accepted” – 60 to 65. 

The official said Antigua and Barbuda’s approach gave time to people to familiarize themselves with the transition, unlike some other countries in the region that went for a drastic change.

“Grenada moved to 65 in one go. We gave people a very long time; 10 years is a significant period of time to adjust your mind from 60 to 65,” he said. 

Matthias also said that the system has produced some positive results as the adjustments saw a small surplus. He also warned that the surplus might go down as the system considers bringing fresh changes. The ABSSB is also reportedly considering the option of pension indexing to cushion retirees’ purchasing power.