Even though that the pension in Jersey already is high compared to the UK, an increase has been announced for this upcoming Autumn (2011) by about 2.5%. The  increase of 4.48 GBP results in 184.45 GBP per week for single pensioners and to 306.25 GBP per week for married couples pensions.

Jersey pensions are thereby 82.3 GBP higher per week than the UK pension, which is at only 102.15 GBP per week. In a year the difference in pensions between the Jersey pension and the UK pension is close to 4300 GBP.

The  pensioners in Jersey can enjoy a whopping 80% higher pension than the pensioners in the UK. With this said, to all people in the UK: Do not forget to save for your own private pension if you can! You will need the money.

The UK government are discussing changes to the public sector’s pension plans. The main change that has been discussed is whether increased contributions should be enforced or not. It now looks like the pension contributions increase will come into effect in April next year. This will be effecting staff in Civil Services, NHS, Teachers, Firefighters and Police men.

People employed in the public section that earn less than 15 000 GBP per year will however not be effected by the possible increase in contributions.

Employees earning between 15,000 GBP and 21,000 GBP will be paying 0.6% higher contributions from April 2012.

Those that earn more than 21,000 GBP will be noticing the highest increase, with an increase of up to 2.4%.

The government is the biggest contributor to our pensions. But thanks to people living longer the proportion of funds available is diminishing. The Pensions Commission suggests the number of people over 65 will rise by 78% between now and the year 2050.

The government says over 4.5million people are not saving enough for their retirement.

“Unless we act now … we will bequeath a nightmare both for future pensioners, plunged into poverty, and for future taxpayers, grappling with the consequences” Peter Hain

“Over the next 50 years the number of people over pension age will increase by more than a half - meaning there will be only two people working for every one person in retirement, compared with four people working today.”

Peter Hain told MPs during a Pensions Bill Debate, 7 January 2008

Due to be launched in 2012, the governments Personal Accounts pension scheme will place a limit of £3,600 on annual contributions. Within the new system, workers will automatically be enrolled and will contribute 4% of their salary, with an additional 4% matched by employers 3% and tax relief 1% to a personal pension scheme.

It has been suggested that a way of solving the UK’s pension crisis is to force people to save a proportion of their income for later life. Provided employers contribute as well, people seem to be in favour this option. The less attractive alternative could see the government increase the starting age for the state pension from 65 to 67 or even 70 years of age.

In 1980 the Conservative party abolished the direct link between state pensions and earnings. As a result, the value of the basic state pension compared to average earnings is falling and the Labour party has ruled out restoring it. The question now is whether those people who rely on the state pension are condemned to live in poverty?

Over the next thirty to forty years the proportion of the population over the 65 years of age will increase from 16% to 25%.  As more people depend on their pensions there will be a greater demand on government resources and taxpayers money – to fund the ever aging population.

On average about half a pensioner’s income is currently provided from their state pension and other government benefits. The government is aiming to see a larger proportion of retirement income from, savings, investments and private pensions. However, young people are saving far too little to make this a reality to date.