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With changes to the Social Security pension age coming into effect this month, there’s never been a better time to plan for your retirement. Let us explain how these changes will affect you.
The changes – which were approved in 2011 to cope with the increase in life expectancy – mean that the Social Security pension age of 65 will increase by two months every 10 months until it reaches that age of 67 in 2031.
Although the plans were announced when they were approved by the States Assembly back in 2011, Islanders are being reminded to check how the change will impact them.
Islanders born before 1 January 1955 are not affected by this change – they will be able to claim their pension at the age of 65. Everyone born after 1 March 1964 will reach pension age when they turn 67. But the age at which islanders born between 1 January 1955 and 1 March 1964 can claim their pension will depend on their exact birth date.
The changes will also affect what happens if you choose to take your pension early. Under the old system, from age 63 Islanders could choose to claim their pension early and receive a lower amount. But from 2025 – when the pension age will be 66 years – you can only claim your pension early when you reach 64. And from 2031, early pensions will only be available from the age of 65.
If you’re feeling confused, don’t worry. Below is some examples of how the changes will affect individuals. And you can use a simple online calculator to find out your retirement age. Just visit: www.gov.je/pensionage.
Emilia is 36 and works as a hairdresser in town. She hasn’t really thought much about her pension, or her retirement plan.
She was born on 27 October 1983 which means she will reach pension age on 27 October 2050, when she is 67 years old.
Jane is 64 and works as senior partner at a law firm.
She was born on 2 January 1956 which means she will reach pension age on 2 May 2021, when she is 65 years and 4 months.
Jane’s brother John is 62 and works as a psychotherapist. He was born on 14 November 1958 which means he will reach pension age on 14 September 2024, when he is 65 years and 10 months.
John wants to take his pension early so that he can scale back his practice and spend more time with his family. The earliest he can claim his pension is 14 November 2021, when he turns 63 years old.
If he chooses to take his pension early, he won’t receive the full pension. His pension will be reduced by 0.58% for each month that he takes his pension early. The reduced rate will be payable for life.
Michael is 59 and runs his own plant nursery. He was born on 19 May 1961. He will reach pension age on 19 September 2027 when he is 66 years and 4 months.
