17 January 2017
The Minister for Social Security, Deputy Susie Pinel has today (17 January 2017) published a report on the financial outlook of the Social Security Fund.
The independent report written by the UK Government Actuary on Jersey’s Social Security Fund shows that it is in a healthy condition, with assets of £1.4 billion available to meet the costs of future pensions and Social Security scheme benefits.
However, it also confirms that in the coming decades these assets will gradually be used up as the number of pensioners, and the cost of future pensions, increases.
In common with many other countries, life expectancy and pension costs in Jersey are rising fast. Given the healthy level of reserves, the review concludes that no action is required until after the next three-year review, due in 2019.
The Minister for Social Security, Deputy Susie Pinel, said “The pressures on the fund will grow steadily, but the reserves that we have built up gives us time to consider and make changes to the Social Security scheme during the 2020s and 2030s.
Although this is a long time away, any significant changes to the Social Security scheme must be properly considered with plenty of lead-in time so that Islanders can adjust.”
In October 2016, the Social Security Minister launched the Living Longer: Thinking ahead Review to look at the issues of income in retirement and the pressures facing the Social Security scheme.
Deputy Susie Pinel, said “We need to understand the public’s views on living longer and having a longer retirement so that the government can play the right role in helping people to save for their retirement in the future. This is an opportunity for government, employers and citizens to work together and ensure we find the right solution for Jersey.”
The review will also examine other aspects of the Social Security scheme and the benefits it provides.
Download UK Government Actuary on the financial condition of the Social Security Fund (size 792 kb)