Alternative to raising retirement

Social Security says the pension pot could be empty if nothing is done

A plan which would see Guernsey's retirement age remain at 65 will go before the island's government later this month.

The States Social Security Department has recommended raising the age by two years in order to help fund the island's pension scheme.

But Deputy Mary Lowe has said such a move is not necessary.

The alternative she will recommend to States members is increasing personal contributions by 0.7%.

Social Security has warned the pension fund will run out by 2040 unless changes are made.

As well as raising the retirement age, it also wants to increase employers' contributions by 0.5% to 7%.

Both proposals will go before the States at its July meeting.