Island 'set for pension crisis'

A financial expert is warning islanders in Guernsey could be facing the same pensions crisis as the UK.

A UK government report has said 12 million people do not have sufficient funds to see them through old age.

Jeff Barnett, a director of insurance brokers Ross Gower, believes there is a parallel situation in Guernsey.

He said there was a lack of education on pensions and urged the States to take a more proactive role in making people face their financial future.

'Resounding success'

He said people were burying their heads in the sand and he would like to see the States take a lead from further afield.

"I feel a form of compulsion would be useful," he said.

"Australia has led the way in taxation and retirement planning for over a decade or so now.

"They have introduced a system where future pay rises over a given period are tucked away for the future and that seems to be a resounding success.

"My understanding of the system they use down there is that it would almost provide a good benchmark of where we really should be looking."

As in the UK, islanders in Guernsey receive a pension from the States.