Pensions: ‘Islanders ill-prepared’

Thursday 26th June 2008, 3:00PM BST.

ISLANDERS are currently ill-prepared for future demographic changes, according to a senior pensions adviser.

Ian Shepherd, director at Alexander Forbes in Jersey, warns that increased life expectancy will place ‘a huge strain’ on government spending and on the funds of individual pensioners.

Mr Shepherd said that people in Jersey were more likely to live longer partly because of medical advances and better health care, but also because workers in service industries tended to survive longer than those in manufacturing environments. He said that as the population increased, resources such as oil and food would become scarce, thus creating investment volatility, which would have a knock-on effect on pension pots.

Those most protected would be civil servants in final salary schemes with full index-linked pensions, he said.
Mr Shepherd was speaking at the launch of a new Alexander Forbes pension product, the Jersey Pension Investment Trust. The tax shelter scheme is one of several that have been set up by Island-based providers since the Jersey pensions law was changed at the end of last year to allow Retirement Annuity Trusts.

*Picture: From left: Alexander Forbes divisional director Adrian Peacock, director Ian Shepherd and managing director Niall Doran

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1
Phil

June 26, 2008 at 7:27 pm

News alert. Men who sell pensions in Jersey say people need more pensions. Ground breaking stuff.

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2
Cate Hamilton

June 27, 2008 at 8:04 am

Jersey is ill prepared for the implications of an aging population in more ways than one.

After discovering the cost of full time residential care and the astronomical cost of home nursing care when trying to find a way to look after an elderly relative recently, I have been appalled.

In the public sector, I was passed from pillar to post within the States run departments while I tried to find out if the those services they provide may be able to help me keep this person in her own home, not taking up a valuable space in a care facility and it seems that the pervading mood is one of gloom and inability to do very much at all. People have been very kind, but no one has been able to suggest anything other than to fund care ourselves privately if we are to want more than the bare essentials.

The States needs to stop wondering how to spend tax payers’ money on the supposedly iconic Waterfront which still just looks like an industrial wasteland and has had much time and money wasted on it relative to other pressing issues and ask themselves not only how we are going to fund persions ~ but the care of the elderly in general.

We are hard pressed to meet their needs and it seems that unless you have a sizeable amount squirrelled away to then spend on your own care in your latter years, hoping it doesn’t run out and leaving nothing for your children, that you are indeed going to be in for a miserable old age. WAKE UP JERSEY, you already have a problem and it’s going to get worse.

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3
Richard Packman

July 4, 2008 at 4:51 pm

Dear Sir,

I noted with interest the comments made by a new pension provider in the Island in your business pages (JEP, 26th June) however I wish to write to put the record straight regarding the availability of pension products in the Island.

Following the departure of the last recognised pension provider (Norwich Union) we at Enrich have worked to provide a number of different pension options to the local community, be it for personal or corporate pension arrangements. Rather than one firm of financial advisors marketing their own product, our pensions are available through all Independent Financial Advisors on the Island and it is their responsibility to provide best advice after due consideration has been made to the suitability of the applicant, levels of contribution and of course the charger’s for the product.

The development of retirement annuity trusts (RAT) here in Jersey in 2008 provides a viable and flexible pension solution to Islanders however I do not agree with the comments made by the Directors of the Jersey Pension Investment Trust that RATs “are not for ordinary people”. We have strived to make our pension products affordable to the entire community, with the minimum contribution being as little as £100 a month.

Whilst welcoming other providers into the market place to provide a wider choice to the Island’s inhabitants it is important that people do not feel they have no options at the present to make pension provision if RATs are being marketed as only being available to the wealthy.

Yours Faithfully

Richard Packman
Director of Enrich
tel:01534 706500

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