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
