Pension
Legal retirement age is 65 years in the Bahamas with benefits paid as a percentage of average monthly income in the last three years before retirement, starting from 15% of the average monthly income for 150 to 199 weeks of contributions, and going up to 60% of the average monthly income for more than 1,750 weeks of contributions. The minimum pension is BSD 301 (Bahamian dollars) per month.
Contributions made to the National Insurance Board range from 2% to 8.8% of the monthly income by the employee and 2% to 5.9% of the monthly income by the employer, depending on age, earning level, seasonal work, or self-employed status.
Dependents/Survivors Benefits
Eligible dependents include widow(ers), surviving children under 16 (21 if they are full-time students), and parents, amongst others. Benefits are paid as below:
- Widow/widower receives 50% of the survivors benefit, depending on work status or childcare situation.
- Children each receive 10% of the survivors benefit per month.
- Other survivors are eligible to receive 50% of the survivors benefit.
The minimum payment is BSD 270 (Bahamian dollars) per month for widow/widower and parents, BSD 110 per month for a dependent child, and BSD 125 per month for an unmarried orphan, with contributions to the National Insurance Board varying in percentage based on employment, similar to pensions.
Invalidity Benefits
The National Insurance Board provides disability benefits to eligible individuals who must:
- Be under 65 years of age
- Be permanently disabled with a non-occupational injury
- Have paid at least 150 contributions to the National Insurance Board
The invalidity benefit is as follows:
- If disability ranges from 1 to 24%, a lump sum grant is paid as BSD 100 (Bahamian dollars) for each percentage point of disability
- If the disability is above 25%, a lump sum grant is paid as an amount between BSD 500 and BSD 1,000 and a monthly pension ranging from 20% to 100% of the injury benefit (66.6% of the monthly average income of the insured person)
Contributions are made to the National Insurance Board varying in percentage based on employment, similar to pensions. Upon retirement, the disability pension is replaced by the old-age pension.