ESS warns that pension fund could be empty in 30 years
GUERNSEY’S pension fund could be fully depleted by 2046 unless more is done to improve its sustainability.
Employment & Social Security president Michelle Le Clerc said that contributions to the pension pot might have to be raised in order to meet the shortfall.
The Guernsey Insurance Fund, which pays out the old age pension, has been in deficit since 2009 and this is forecast to grow from £19.4m. this year to £21.4m. next. It has net assets of £735.8m.
The committee is working on a ‘second pillar pension’ which will allow employers and employees to save for their retirement through a secondary pension scheme.
However, Deputy Le Clerc has conceded that it would ‘take some time’ to get up and running.
The deputy added that there were ‘unpalatable truths’ about the proposals that would have to be brought before the States.
‘One of the other ways that we can ensure the sustainability, which is less palatable to most of the population, is to reduce the amount going out each year – in effect that means we have to reduce the old-age pension payments.’
Full story in today's Guernsey Press
