Prime Minister Gaston Browne has urged Antiguans and Barbudans to take a proactive approach to financial planning, warning that pensions alone may not be sufficient to maintain a comfortable standard of living in retirement.
Speaking on The Browne and Browne Show on Pointe FM, the Prime Minister stressed the importance of long-term investments, particularly in real estate, as a means of securing financial stability in later years.
“Pensions were not designed to take care of all of the expenses of a pensioner,” Mr Browne said. “It has to be supplemented, so our people must have the discipline to save and invest to boost their income during the retirement years.”
The Prime Minister Gaston Browne encouraged citizens to explore investment opportunities in property, pointing to the government’s ongoing initiative to make beachfront and waterfront properties available for local ownership.
“If our people do not seize these opportunities, you may find that the wealthier ones are the ones who end up buying them, investing, and making the money,” he warned.
He said that middle-class citizens in particular should consider real estate investment as a retirement strategy, noting that many have significant savings but do not always leverage them effectively.
“There are plenty of middle-class people who have $400,000, $500,000, maybe up to a million dollars saved,” he said. “But if you have a few hundred thousand dollars in the bank right now and you get one bout of sickness, that can wipe it out.”
He suggested that purchasing property and participating in the growing Airbnb market could generate stable, long-term income, particularly for those preparing for retirement.
While acknowledging that real estate investment may not be accessible to everyone, Mr Browne said there are ways for lower-income individuals to participate, including through joint investments.
“You can have individuals coming together and jointly investing—two or three people pooling their resources,” he said. “If it’s two people and you want to come up with $200,000 in equity, you put in $100,000 each, go to the bank, get a piece of land, build a property, and share the revenue.”
He also highlighted the potential of mutual funds and real estate investment trusts (REITs) as options for smaller investors to gain exposure to the property market.
“One of the areas in which we can probably assist those making less money is by getting our mutual fund and investment trust legislation going, so that they can invest in these funds,” he said. “That way, even someone with $20,000 or $30,000 saved can still invest and earn dividends.”
The Prime Minister emphasised that financial preparedness for retirement should be a national priority, as many citizens find themselves struggling in old age due to a lack of proper planning.
“We need to have some discourse about this so that people understand the importance of investing and building some level of wealth to take care of their old age,” he said.
He noted that while some may expect financial support from their children, changing economic conditions mean that younger generations often have their own financial burdens.
“You have to understand that the world is becoming more and more competitive, and even children have their own challenges,” he said. “By the time they finish taking care of their own obligations—mortgage, car payments, children’s education—it’s difficult for them to take care of a parent.”
Mr Browne said the government would continue to facilitate opportunities for investment and financial growth, but ultimately, individuals must take responsibility for their own financial futures.
