Jersey's government is facing criticism for postponing plans to introduce mandatory workplace pensions.
Social Security Minister, Deputy Lyndsay Feltham, stated that while her priority is to "support employers and workers in transitioning to a living wage," she would also explore ways to encourage people to save and plan for their retirement.
Deputy Louise Doublet, head of the government body that reviews Social Security decisions, acknowledged the minister's focus but stressed the need for government action on both immediate living costs and future financial planning to ensure citizens enjoy a good quality of life in their later years.
Pension vs. Pay Rise Unlike the UK and Guernsey, Jersey employers are not required to provide pensions, leaving them to decide between offering a pension or a pay raise.
Mike Freer, a pensions specialist at BWCI, highlighted that the key issue for employers is the significant additional cost. Employers must determine whether they can absorb this cost, pass it on to consumers, or forgo staff pay raises to cover pension contributions.
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