The financial outlook for the Social Security and Health Insurance Funds have been published outlining a current ‘good condition’ of funds for social contributions.
The independent reports, written by the UK Government Actuary’s Department, indicates the financial outlook of the funds for the next 20 years and beyond. The reports also show that in the coming decades, assets will be gradually used up as the number of pensioners and the cost of future pensions and health care increases.
Social Security Minister, Deputy Judy Martin said, “The Social and Health Insurance Funds provide a range benefits that are valued by islanders. The funds support one of our main strategic priorities; to reduce income inequality and improve the standard of living in Jersey. The actuary’s reviews will support the policies we develop to help deliver these priorities over the next four years.”
Due to life expectancy having increased with other countries, pension and healthcare costs are expected to rise. The reports have recommended that the government develops a strategy about how it will use current reserves to help smooth the transition to an older population in the future. At the end of 2018, the Social Security Fund has assets of £1.7b to meet future pension costs and other benefit schemes, whilst the Health Insurance Fund had £94m to help towards future primary care costs.
Treasury Minister, Deputy Susie Pinel said: “It’s an ideal time for the reports to have been published as they will help Ministers and States Members decide on the next Government Plan and how we continue to financially prepare for an aging population. I welcome the reports, and to confirm our funds are in a healthy position.”
Government of Jersey Press Release.