Contributions for Old Age Pension

​​​​​​Request ​797665761

I would like to know how the contributions to Social Security, over those required to be paid by an individual are used.

For example, an individual who will receive a full State pension at 66 and 4 months, who will have paid 50 years of contributions on reaching that age, where does the 77% of the contributions that are allocated to the Old Age Pension pot, actually go, and who benefits from this?

Response

The information you have requested is already available publicly; therefore, we’re applying Article 23 of the Freedom of Information (Jersey) Law 2011.

General information on how Social Security contributions are used is published here:

Social Security contributions and who pays them 

https://www.gov.je/working/workingconditions/socialsecurity/pages/contributions.aspx [go​v.je]

This page explains that during your working life up to pension age, you’re liable to pay contributions whether you’re working or not. These contributions are used to pay contributory benefits, including the old age pension. It also includes the 2024 breakdown showing that:

• 77p was used to pay for old age pensions

• 20p was used to pay for working age benefits

• 3p was used to run the scheme

Further details on how contributions are used can be found here:

About Social Security contributions

https://www.gov.je/Working/Contributions/Payments/Pages/AboutContributions.aspx [gov.je]

Exemption applied:

Article 23 – Information accessible by other means.​