With people across the Caribbean living longer, healthier lives, the old formula of “learn, earn, retire” is no longer enough.

Rising life expectancy, coupled with mounting concerns from regional governments about ageing populations, is putting the spotlight on one critical issue: financial security in later years. Sterling Asset Management Ltd. is urging Jamaicans and the wider Caribbean to rethink retirement altogether. The company is advocating for longer-term planning, more adaptable savings strategies, and smarter, diversified approaches that can sustain individuals well beyond the boundaries of traditional retirement models.

“Caribbean citizens can no longer rely on the old idea of learning, earning, and then quietly retiring,” says Charles Ross, President and CEO of Sterling Asset Management. “Many of us are living well into our eighties and nineties, often with decades of active, meaningful living ahead. To fund those years, we need to build stronger, smarter financial foundations.”

Derek Osborne, Partner and Senior Actuary at TELUS International Health Bahamas, added that the data paints a sobering picture across the region. In some territories, such as Jamaica, as little as 11% of the working population is covered by approved pension plans, while the IMF has cautioned that reserves in several Caribbean social security systems could face depletion in the coming years. “None of the national insurance systems or pension plans are designed to fully replace your income in retirement,” Osborne said. “The idea is to have three sources of retirement income: government benefits, employer pensions, and personal savings. If one of those is weak or missing, you must strengthen the others yourself.”

Osborne encourages Caribbean residents to start early, set clear financial goals, and review them regularly. “Even small amounts, invested consistently, can grow significantly over time. Revisit your goals every few years and adjust for life changes, market shifts, and inflation,” he said. He also emphasised the importance of preserving long-term savings, noting that early withdrawals can significantly undermine retirement security.

Derek Jones, Chairman of the Board at Sterling Investments, echoed that sentiment with lessons from his own experience. “Save early and save often,” he advised. “Even when cash flow feels tight, discipline pays off and invest wisely, let your money work for you. What buys a house today might only buy a vacation in 30 years if you don’t guard against inflation.”

Jones reflected on generational shifts in investment habits across the Caribbean, noting that older generations often leaned heavily on real estate due to distrust of financial markets. “For many years, real estate was the go-to. You buy a piece of land and hold it. But times have changed. While real estate still has value, it requires active management. At some point, you may want to shift into investments that are less hands-on and more liquid.”

Ross also emphasised the importance of strategic, diversified investment across the region. “Starting early makes an enormous difference. Even small differences in return, over decades, add up to life-changing sums,” he said. “We also encourage people to think in stronger currencies like the US dollar, especially in territories where local currencies face inflationary pressures or devaluation. Holding assets in more stable currencies can help preserve your purchasing power.”

He added that diversification should be tailored to a person’s life stage, with a healthy mix of fixed income, equities, and international exposure to reduce risk and increase long-term resilience. “We’re seeing a growing number of people entering retirement age without enough to sustain their lifestyle,” Ross said. “Whether you’re 25 or 55, it’s never too early, or too late, to take control of your financial future. The key is to be deliberate, disciplined, and proactive.” As the Caribbean’s population continues to age, Sterling Asset Management remains committed to equipping investors with the knowledge, tools, and strategies they need to thrive well beyond traditional retirement age. “Retirement isn’t the end of the road; it’s the beginning of a new journey. Let’s make sure we’re financially ready for it,” Ross concluded.