Addressing members of the Institute of Directors, Deputy Susie Pinel said that in the future the emphasis had to be on workers taking out private pension plans to provide for their old age.
And, as the Island faces the demands of a growing ageing population, government, businesses and individuals must all work together to sustain the Island’s economy, she added.
‘We must move from a “culture of entitlement” to encourage financial independence and self reliance.
‘I am sure you have all heard the statistics. Today there are 17,500 people in Jersey who are over the age of 65. In 20 years’ time there will be 29,000, an extra 11,500. The older population is growing fast and this will continue.
‘There are still lots of unknowns but it is clear that health and pension costs will grow, and we are already planning for this.’
Deputy Pinel said that her department was in the throes of a major review of the Social Security scheme. Meanwhile, the results of a public consultation held last year showed that pensions were high on Islanders agendas.
‘Many people commented that they began saving because their employer offered them a workplace pension,’ she said.
‘Everyone needs to be encouraged to save for their own retirement and not rely wholly on the state.
‘We will be looking at workplace pensions and other ways to support people to save for retirement in more detail next year.’
The minister warned the review was likely to have an impact on businesses, particularly smaller companies, and said it was therefore important that the States and businesses worked together to improve pension provision for their staff.
‘Planning ahead is a major theme at Social Security as people depend on us for their old age pension and we need to make sure that this will still be available for future generations,’ she said.
‘We have a healthy reserve fund – over £1.7 billion– and see ourselves as being in a strong position but there are still real challenges ahead.’
Deputy Pinel said the review was also addressing health provision, long-term care and contributory benefits for working families.
‘This year we are looking at some of the benefits that working-age people can receive, when they have a new child or after the death of a partner,’ she said.
‘We want to recognise the important role that fathers can play in bringing up children and support people who become parents through adoption or surrogacy with the same benefits that are available to other parents.’
