I refer to a letter published in The Gleaner of Saturday, June 20, under the headline "A proposal for pension reform". I agree with the writer's premise that those who reach retirement age should be allowed to retire with dignity and sufficient income - hence ensuring that they don't become a burden on family, friends or the state. For many years, the Government has proceeded on the basis that they would provide a basic income through the National Insurance Scheme (NIS) but the individual was to take responsibility for any additional income.

However, the writer then goes on to advocate that all employed/self-employed persons contribute up to ten per cent of his/her remunera-tion to the Government in return for a "Retirement Bond" and that the money be used by the Government to reduce the deficit in the Budget!

The concept of providing for retirement is much better left to the private sector - a position the Government supports. Under the Pensions Act 2004 (and Regu-lations 2006), a member of an approved pension plan can contribute to that plan, up to ten per cent of his/her income, tax-free, with the employer contributing up to a further ten per cent. This money is submitted to a registered provider who is required to provide each member with full information on their contributions, interest earned and likely pension, on an annual basis.

The vehicles are already in place to allow all persons the opportunity to invest in their future. Throwing money at the Government is not a good idea; investing wisely, in a well-regulated market providing choices, will benefit not only the investor but society as a whole. The opportunity is there, the vehicles are there - now it is up to each individual to invest, or not.

I am, etc.,

NICK WOOD

nicwood@flowja.com

Kingston, Jamaica