Secondary pensions rolled out in Guernsey

A secondary pension scheme has been made available on an initally voluntary basis in Guernsey.

The Your Island Pensions Scheme was to ensure islanders had "a good quality of life in their later years" by allowing them to save more for their retirement, the States said.

The scheme will become mandatory for Guernsey and Alderney businesses with more than 26 employees from July.

The States said the law would enable islanders of working age to save more for their retirement, to avoid them relying on the state pension or tax-funded welfare benefits later in life.

Helen Dean, from the Committee for Employment and Social Security, said it would be hugely beneficial.

She said: "It has made many people in the UK start saving for retirement, so 11 million new savers in the UK

"I think it's worth bearing in mind your biggest industries are financial services, but 65% of workers in Guernsey aren't saving into a personal pension - auto enrolment will transform that."

Deputy Peter Roffey, president of the Committee for Employment & Social Security, said secondary pensions were "of paramount importance".

He said: "Our population demographic is changing, with people living longer on average.

"By encouraging working age people to save more for their retirement, we aim to avoid the prospect of a major problem with pensioner poverty, whilst also maintaining a sustainable welfare budget in the long-term."

Smaller employers would also need to provide approved secondary pensions for their employees on a "phased basis", and employees would be able to opt out, officials said.

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