by Rick Lowe

A group of insurance executives and investment officers have apparently convinced the government that The Bahamas needs mandatory pensions.

Well we beg to differ. The Bahamas needs a better educational system so people will learn to fend for themselves.

We also need politicians that will stop making our citizens wards of the state for a vote.

If we remember correctly, there is an objectionable clause that pensions MUST be administered by companies and licensed individuals. There are pensions in the private sector that are properly administered by trust deeds and audited annually and this practice should not be discouraged.

In at least one instance we know the return has been better than if it was invested with one of the companies negotiating with government for this privilege to manage pensions, as the cost to administer the plan is kept to a minimum. Quite possibly there are more.

Of course we do not object to companies and individuals voluntarily contributing to a pension plan of their own and investing them through companies and/or individuals of their choice. We do take strong objection however to the government forcing companies and individuals to have pensions that must be administered by a select few companies.

The market dictates that other options are available if individuals choose. After all, it’s their money.