The state pension was “never designed” to serve as a replacement wage for Jersey’s pensioners, according to Social Security Minister Deputy Lyndsay Feltham. Feltham emphasized the original intent of the state pension and addressed concerns regarding its adequacy for low-income pensioners. Feltham’s comments came in response to a query from Deputy Max Andrews, who highlighted the financial struggles faced by many pensioners, particularly those with lower incomes.
A state pension functioning as a replacement wage would necessitate substantial redesign and be financially unsustainable due to the island’s aging population, she explained. “It would be nice to have a magic wand and make the old age pension higher,” said Feltham, warning that higher pensions would increase the financial burden on the working-age population.
State pension’s intended purpose explained
“From those employed and knowing the pressures we’ve got on the island, that is something I cannot currently do,” she added. Feltham stressed the importance of understanding the state pension’s purpose and noted efforts to extend government support for low-income pensioners. She mentioned plans to increase access to a scheme that helps with dental, foot, and eye care, and she is considering expanding this support to subsidize doctor’s appointments for more pensioners.
Deputy Max Andrews agreed that expecting the state pension to match a full-time minimum wage was “unrealistic.” However, he urged the government to ensure stronger tax revenues and social security contributions to fund social spending. Andrews also suggested cutting spending in non-essential services to better support pensioners, particularly during winter when expenses rise. “The government has to support pensioners, especially during the winter months because that is the time when people are seeing their expenses increase,” Andrews asserted.
