The Isle of Mans govt is looking at big pension system changes as its social-security setup needs a quick fix. A new report shows the islands pension fund could be empty by mid-2040s which means theyʼd need extra cash from somewhere else
Alex Allinson‚ the Treasury minister says its time for a nation-wide talk about whats next. The system (which works just like UKʼs triple-lock) gives yearly increases based on wages inflation or 2.5pc – whatever is highest
The current setup isnt working well: about 80pc of the money goes to 20k pensioners with basic payments of £241.50 per person. The retirement age is now 66 but will go up to 67 by early-2028; then to 68 somewhere around mid-40s
The Treasury looked at different fixes and came up with these options:
- Moving up retirement age faster
- Getting more money from National Insurance
- Changing how pension increases work
- Making new rules for full pension qualification
We need a national conversation about how we preserve the long-term future of our state pension system
The UK has its own problems too – even though Labour says theyll keep the triple-lock some experts think it wont last more than 10 years. Right now UK spends £124bn on pensions (which will jump to £158bn in about 4 years)