Auto-Enrolment Pensions – A Solution To Guernsey's Demographic Time-Bomb?

This February the States of Guernsey is set to debate the introduction of a system of pension auto-enrolment for Guernsey. The debate is an attempt to address what is a demographic time-bomb arising from a dual problem of an ageing workforce coupled with low pension participation levels. The States has estimated as little as 40% of the working population have pension provision, so it is little surprise that they have sought to follow the model of auto-enrolment that has been implemented by the UK Government. Whilst there have been and continue to be challenges for employers of all sizes in the implementation of auto-enrolment in the UK, it has resulted in a significant jump of pension participation over the first two years from 55% in 2012 up to 70% in 2014, according to the latest figures.