July 21, 2014

Dear Sir,

I read with interest the submission to The Royal Gazette by Mr Quinton Edness relative to the government ‘freeze’ on pensions.

Let me join in the argument for those people who have retired and are unable to touch their retirement funds because of the Private Pension Act which came into being in early 2000.

At the time of the enactment of this piece of legislation we were told that this act was brought into being so that government would not be responsible for pensioners needs outside of the national pension.

That meant that once you retired, you were allowed a percentage of your retirement money, but the balance was to be invested or you could purchase an annuity.

When you ‘kicked the bucket’ the funds were then to become part of your estate.

This was the idea of the government of the day so that pensioners would be deterred from frivolous spending using their pensions to take trips to Vegas, Atlantic City or a couple of cruises around the world, and save every penny they could, ultimately for the benefit of someone else.

Fast forward to 2008 and the subsequent years of the recession. Pensioners who worked hard to acquire their own homes (often by building it themselves with the help of their children and friends) are in many cases now short of money. Many Bermudians worked to provide for their families and leave the ‘homestead’ for their children which now is worth quite a lot despite the downward spiral of real estate. But now, we are in our later years and are unable to keep the property in good repair because of the high cost of labour and materials and an even higher cost of living which shows no signs of improvement. Further, some seniors are in poor health with illnesses such as Alzheimers Disease and Dementia (which is soon to become an epidemic in Bermuda) and now require extra funds to pay for care either inside or outside the home. Many Bermudians do not have the funds to cover all of these extra expenses. So much for the ‘golden years’.

I believe our plan was a replica of that in place in the UK, and which, in the recent past, has been repealed. It is time that the Private Pension Act 1998 also be repealed so that Bermudians can be allowed to spend their money as they need, not by the dictate of the government. It is not a matter of wanting, it is a matter of needing extra monies while we wait for either a beloved to die, or the home becomes a ‘white elephant’ for all. Aaaahhhh – the golden years

T.J. WENTWORTH