THE young need to plan ahead to achieve their dream of early retirement – and the public needs to press for action if Guernsey is to avoid its own pensions crisis. The BWCI group held on Thursday the latest in its topical pensions issues seminars at Albert House, with pensions working party group member Ian Morris – who is also a director of BWCI Ltd – talking on the future for retired islanders.

This was followed by a presentation given by Diana Simon, who focused on trends.

After the seminar, Mr Morris said that since Norwich Union announced earlier this year its phased withdrawal from providing island schemes, action needed to be taken both by the old and young .

‘Young people want to retire at 60, but where do they think the money will come from?’ said Mr Morris. ‘Employers might be putting a modest amount into pension schemes but it’s certainly not enough.’

Mrs Simon agreed.

‘People’s standard of living seems to have increased dramatically since the last decade,’ she said.

And Mr Morris said that part of the problem was that young people were perhaps more interested in the latest gadgets and holidays than investing.

‘It’s hard to get younger people involved – older people are quite interested,’ he said.

‘But here in Guernsey it is particularly difficult, what with the cost of housing.

‘People are living a lot longer than expected and the standard of living has risen.

‘It’s a big worry that people aren’t taking ownership of their future.’

And Mrs Simon said that a survey had shown changes in the pensions situation.

‘The move to defined contribution schemes has slowed down,’ she said.

‘The vast majority of defined benefit schemes have been closed to new members.’

But Mr Morris said people wondered whether there would be anyone to buy a pension from in the future.

‘A huge number of people are concerned about that possibility,’ he said.

‘There’s only one option and that’s not satisfactory. We are trying to see if other insurers will come forward and asking whether the States has anything in place for that eventuality.

‘But since the withdrawal of Norwich Union, it’s important that there’s some pressure from the public and elsewhere.’

Mr Morris said that the matter would be discussed further at a working party meeting this month, chaired by Social Security minister Diane Lewis.