SSP Diaries | A pensioner’s burden – taxation!

Most people spend all the working days of their lives doing eight or more hours a day, or through the night. Some, because of the nature of their jobs, belong to the essential services and, for considerable portions of their lives, work far more than that and cannot be compensated accordingly by the State.

In one’s early working days, a pension is the farthest thing from our minds, even though the PAYE system makes sure that you are in receipt of a pension at the end of the line, but only if you are in the civil service.

In the private sector, various types of contributory pensions schemes have been introduced since we gained Independence, to the benefit of those workers. Sadly, there are still workers in Jamaica that have little or nothing to receive at the end of their time in the workforce, through no fault of their own. It’s just that their jobs carry no such benefits. Indeed, the National Insurance Scheme goes a far way in trying to reduce this gap; however, there is still a very far way to go. Nevertheless, in real life there are those of us that will have to keep on working, or try to do so, until the day that we die. Why is this so, even when you are in receipt of a pension?

The answer is as simple as it is complex and demoralising. In my experience, a pension ‘income’ today bears little or no ‘resemblance’ to your original earning power, so automatically your disposable income, for example, has been drastically reduced.

CANNOT MAINTAIN STANDARD OF LIFE

Theoretically, you cannot maintain the standard of life you were accustomed to during your initial working years. The cost of goods and services to a pensioner is no different from what it was when you were earning full pay. The pensioner experiences a reduced lifestyle and quality of life, while taking on additional expenses that come with age, such as health problems. The lack of the ability to cope with these often hastens death, rather than prolongs life. Economic inflation is a real stress factor for pensioners. The cost of life’s basics never remains stable, pensions do not appreciate; in fact, they depreciate in the current economic climate. The situation is dire and not talked about often enough. Many people believe their circumstance is their lot in life and continue to suffer silently.

Some pensioners are well and fortunate enough to continue in employment; they are the lucky ones. I am sure, however, that if their pensions were sufficient, they would not venture out again. Retirement is a time to rest and enjoy the rest of one’s life, having spent most of your crucial years in the workforce. People in the workforce are obliged to pay taxes throughout their working lives; they should not be required to pay income tax in retirement, from their pensions. This is something that the government should consider for the benefit of the retired population. One cannot escape paying taxes altogether, as there is a tax on consumer items. But to further reduce a person’s pension by way of taxing it directly is, in my mind, most inconsiderate, to say the least, in our economy. Most pensioners suffer in this country, and they are doing so silently. Good leadership does not wait until there are major cries of injustice and the like to address, positively, issues such as the one detailed in this article.

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