Secondary pensions of primary need

Post-Christmas and pre-New Year is a period of limbo where people have enough leftovers on their plate without chewing over the complicated question of retirement planning.

And with a debate on new government taxes and charges due shortly, a further discussion about diverting money out of the pockets of the 25,000 islanders without an occupational pension is not going to be welcome. With an election on the horizon, the political temptation to dodge the tricky issue of secondary pensions will be strong.

That would be a mistake. The island is already lagging badly behind in making sure that the pensioners of the future have enough to live on.

A further delay will only increase the risk that, as the decades tick by, the island will struggle to maintain a decent quality of life for its elderly without overburdening its workers.

This is a thorn that must be grasped now, although it will not be popular with many small businesses which could do without the extra burden.

For this problem will not go away. The population is ageing and the old-age pension will shrink in value and not be enough to support the baby boom generations currently entering their final years of employment.

Without radical action, the pension and benefits systems will gradually move into crisis.

The scheme proposed is the soft option. Islanders determined that they have no need of financial help to get them through their retirement years can opt out and face the consequences.

The States is relying on fewer than one in 10 doing that. The remainder will be encouraged to stay partly because they do not want to lose the money invested by their employers on their behalf.

With June 2020 in mind some deputies might be tempted to score political points over secondary pensions. They will get backing from short-sighted employers and cash-strapped workers. By the time they are proved wrong, their political careers will be distant memories.

If by playing to the gallery for a few cheap votes they succeed in scuppering the scheme, they will have done the island lasting harm.