Copyright newsday
FINANCE minister Dave Tancoo has warned that TT’s rapidly ageing population is reshaping the country’s economic future, forcing urgent reforms to the National Insurance System (NIS) and new initiatives to mobilise domestic capital. Tancoo delivered a keynote speech at the TT Stock Exchange’s Capital Markets and Investor Conference in Port of Spain on October 24. “Our population is ageing, and it is doing so rapidly. In 1980, only about five per cent of our citizens were aged 65 or older. Today, that number stands at over 11 per cent. By the year 2060, it is expected to more than double to 26 per cent. Think carefully about what that means.” He noted that fewer workers will be available to support retirees, which could be detrimental to the NIS. “This is a reality that every responsible government must face. “This is a reality that this government refuses to ignore. The national insurance system is already under serious strain. “At this very moment, we are paying out more in benefits than we are collecting in contributions. “The fund is being drawn down each year to cover the gap. “When we assumed office in May 2025 the accrual estimates revealed something deeply concerning, that if no action is taken, the National Insurance Fund will be completely depleted by the year 2032,” he said, adding, “let me repeat that: within eight years, the fund that supports tens of thousands of retirees could be empty. That is unacceptable.” Describing the risk as politically and socially intolerable, Tancoo set out the government’s corrective measures as presented in the 2025-26 national budget. He said, “That is why we are implementing a three per cent increase in contribution rates in January 2026, followed by another three per cent in January 2027, and a gradual increase in the retirement age beginning in 2028. “These are not easy choices. No one enjoys raising contribution rates, but the alternative is far worse – an entire generation of retirees left without security, without dignity and without the benefits they earn through decades of hard work.” Tancoo framed those NIS adjustments as necessary but incomplete on their own. He said the government must also deepen the country’s capital markets so citizens can build private wealth and reduce long-run fiscal pressure. “What we need is more participation, more people investing, more people saving, more people building wealth for their own future,” he said, and he urged that the capital market be positioned as the mechanism for that shift. “The days when we could rely solely on the National Insurance System, on government assistance, are coming to an end,” he warned. “It is not too late to secure your future, to invest, to build wealth and to take ownership of your own financial independence. You, too, can participate in the growth of your country.” To channel domestic savings into productive assets, the minister highlighted plans for two flagship instruments, which he initially revealed in the budget presentation. He said the government would launch a public bond and a state real-estate vehicle to broaden participation and unlock value on the public balance sheet. “In fiscal 2026 we will also launch a $1 billion national investment fund bond backed by shares in First Citizens Group Financial Holdings. This bond will also offer citizens and institutions a safe, tax-free investment opportunity. “It will allow individuals to invest in a vehicle linked to performance of a strong national institution. “Critically, it will also allow the government to raise financing without increasing the debt, the public debt, or adversely affecting the debt-to-GDP ratio,” Tancoo said. He described the Real Estate Investment Trust (REIT) in the same terms — a structural reform to democratise ownership of state assets and provide listed, income-generating securities for investors. “For the first time in our nation's history, the government of TT is creating a state-sponsored Real Estate Investment Fund. The fund, he said, is backed by government-owned properties, commercial buildings, office spaces and other income-generating assets, which will be placed into a professionally managed trust. The trust’s shares will be listed on TT Stock Exchange, Tancoo noted, “giving every citizen, every pension fund and every institution the opportunity to own a direct stake in these valuable assets and in dividends from them.” Tancoo said the budget contains measures to encourage listings and broaden the pipeline of investable local firms. “Additionally, we will be reviewing and enhancing the tax incentives for small- and medium-sized enterprises that choose to list on the TT Stock Exchange. “Our goal is to encourage greater participation on the exchange and support the growth of local businesses,” he said to an applauding audience. The minister further committed to launching the National Innovation and Incubator Programme, “designed to strengthen the ecosystem for innovation and entrepreneurship,” which he said would help startups scale toward public markets. Tancoo also linked market deepening to digital modernisation of public finance and payments, saying, “Active discussions are ongoing to digitise the issuance of government bonds. While competing demands have slowed this process, we recognise the enormous value of this reform, and we remain fully committed to advancing it. “Our approach aligns with the national digital payment strategy and with the central bank's modernisation of payment platform systems. “Ladies and gentlemen, the goal is simple: to make investment and investing as seamless as sending a message – to remove friction, to expand access and to bring more people into the market.” He stressed reform was dependent on confidence and co-operation. “Investors must believe that the market is fair. Businesses must believe that the regulatory environment is stable. “Citizens must believe that their savings are safe,” he said, urging institutional investors, pension funds and brokers to support the NIF bond, the REIT and SME listings and to help educate the public about investing. “To the institutional investors and pension funds, look to the local market for opportunity. Consider the National Investment Fund bond. Invest in listed small- and medium-sized enterprises. Support the state-sponsored real estate investments,” he urged.
