05 April 2022
A new research report on Financial Wellbeing in Old Age has been published by the Government to help establish what needs to be done to help Islanders remain financially independent later in life.
The report describes:
- The current picture of retirement saving and retirement income, including the Social Security old age pension
- The environment in which Islanders can make their own provision for old age, including employers and the pension industry
- How the Government can bring about greater financial provision for old age
- Options for further consideration
The report builds on a series of earlier research, surveys and consultations including two major public consultations "Living Longer – Thinking Ahead" took place between 2016 and 2018. During those consultations most people agreed that the government should look into workplace pensions (84%) and the Social Security pension (83%).
The Government commissioned D3P Global Pension Consulting (D3P) to help take this work forward in 2019 and 2020. D3P researched and discussed the issues with stakeholders and provided options for further consideration. Their work was put on hold due to the pandemic and has now been restarted with the publication of the report.
The report considers how the pandemic has affected the need for the government to solve long-term demographic challenges, such as this.
The main options explored in the report include:
- Developing mandatory saving provisions in workplaces
- Auto enrolment into workplace pension schemes
- Improving the Social Security system
- Boosting existing workplace pension plans
Minister for Social Security, Deputy Judy Martin, said: "I am pleased to see this report being published. It sets out the important foundations and main ideas for further discussion that will improve financial independence and wellbeing in later life for Islanders.
"I want to thank D3P, the many industry representatives, and others who took the time to share their views and ideas on this important issue. I'm also very grateful for Islanders' views from our past public consultations that have informed the work so far.
"Although COVID-19 has delayed the launching of this report, the findings are still valid and provide the important focus this subject needs.
"People are living longer, and with an aging population, more needs to be done to help people save for later life. This report takes us forward and I am hopeful the next Social Security Minister will consider this subject a priority. "
The report can be found here.