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Wednesday, 8 February 2012

"Greed & Overspending Takes Its Toll"

Social Security contributions to rise in the future

An independent review has found the amount islanders in Jersey pay in Social Security contributions may have to rise in the future.

It is to make sure there is enough money in the pot to fund pensions for an ageing population.

The Minister for Social Security, Senator Francis Le Gresley says that the Social Security Fund is healthy at the moment but more changes need to be made over the next decades to protect the Fund. Changes will ensure the workers paying into it today receive a pension when they retire.

Last year the States agreed to gradually increase the pension age from 65 to 67 from 2020. It will increase by two months per year until reaching 67 in 2031.

Senator Le Gresley said:"The States has agreed that the pension age will start to rise from 2020. This will not be enough on its own to meet the challenges of the increasing number of older people over the next two decades.

"I am committed to maintaining the value of the old age pension in the long term and this will inevitably lead to increases in contribution rates in the future."

However the recent decision to raise the pension age means that increases in contributions to the Fund can be delayed for a number of years.

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