Isle of Man plans major changes to save its pension system from collapse
Isle of Man govt looks into dropping its triple-lock pension system as funds might run dry in about 20 years. New report shows urgent need for changes in how island handles retirement payments
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)
