Retirement age 'could increase'

Guernsey's retirement age could be increased to 67 under proposals from the Social Security Department.

The department wants to raise it to help fund the island's pension scheme.

The department said the fund it used to pay for islanders' States pensions would run out by 2040 unless changes were made to contribution levels.

Following a public consultation, the department is recommending the age increase and that employers' contributions go up by 0.5% to 7%.

'Small changes'

The department said that, if approved, the age increase would be very gradual.

Pensionable age would remain 65 until 2019 and then increase by two months a year from 2020. It would reach 67 in 2031.

Social Security Minister Mark Dorey said: "We're recommending a solution involving relatively small changes in several areas rather than one or two big moves.

"It's important to remember that we are proposing these small changes now in order to avoid far greater changes in the future, and also because we're predicting an operating deficit this year.

"This is government doing what it has often been criticised for not doing: proper long-term planning."

About 3,000 people took part in the public consultation.

The proposals will go before the States at its end of July meeting.

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