Survey of Private Pension Plans in The Bahamas (2002 & 2003)
Published: Monday April 4th, 2005
This article provides an update on private pension plans in The Bahamas, based on the latest survey by the Central Bank, which covered the years 2002 and 2003. Preliminary data indicate that the value of domestic savings in private plans increased steadily since 1992, from just over $300 million to in excess of $800 million in 2003. The strongest growth episodes were correlated with similar periods in the economy, supporting steady improvements in labour force participation and coverage. Labour force participation in private schemes is most concentrated in sectors related to tourism, financial services, and communication and utilities (mainly public corporations). Savings have traditionally been invested in public sector securities and bank deposits, with a growing component earmarked for private capital markets instruments. On its present trend, the value of private pension assets could surpass $1 billion by 2006, with further medium term growth fuelled by the positive outlook for employment and incomes.