Stephen Ainsworth, senior partner at BWCI Group, said it would raise awareness generally about the importance of retirement savings arrangements to allow a comfortable and fulfilling later life.
Employment & Social Security has published fleshed-out plans that will affect thousands of islanders and encourage a culture of savings.
It is estimated that more than 25,000 workers in the island do not have an occupational or private pension scheme and are instead relying on the States pension for their old age.
Under the new proposals, all employers would have to make a workplace pension available to their employees and provide a contribution.
It means whether you are a stablehand or a stockbroker, you will be entitled to a workplace pension.
Mr Ainsworth is passionate about pensions and said it was a very positive move for the island.
‘Yes, we should be excited about it.
‘Perhaps I’m not the typical person because I’m rather closer to taking a pension than most of your readers are, but nevertheless I think it’s something that we should all be regarding as exciting. These are really good proposals because it’s encouraging employers who have not already done something about it to do so, and do something for the long-term benefit of their staff.’
As the population ages, it is considered more important than ever to help working people plan and prepare for retirement.
The problem is that pensions have had an image problem and are seen as boring.
So an important question to Mr Ainsworth is how do you make pensions more interesting?
‘Even the term pension is a bit of a turn-off because it is associated with old age.
‘As a firm we try generally to use the term ‘retirement savings’ because that’s a more positive expression, and it’s actually a better description of what you’re trying to do – which is have a comfortable and productive retirement and not be living from one day to the next.’
A UK provider called Smart Pension Ltd has been selected as the administrator of the scheme, which will be called Your Island Pension.
Guernsey companies that already provide a workplace pension to their employees will not be affected, unless their contributions are lower than new minimum standards.
Mr Ainsworth said that this created opportunity for local pension providers.
‘It may be that with the extra interest in pensions, more employers will choose to set up their own qualifying schemes in Guernsey, rather than relying upon Your Island Pension.
‘The States has selected a UK provider for Your Island Pension, and I think some of the local providers will be seeing whether they can offer what they regard as a better product, locally-based and for local employers.’
To that end, the BWCI group will be announcing briefing seminars this month to help employers take informed decisions.
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