Pensions  

Isle of Man proposes to increase pension age to 74

A review of the Isle of Man’s national insurance system has proposed increasing the state pension age to 74 for anyone born after 2011

The 644-page report from the Treasury Isle of Man Government, Review of the Isle of Man’s Social Security and National Insurance Schemes’, outlined proposals that included extending the qualification period for full state pension to 45 years.

It also suggested linking state pension age to longevity such that retirement made up 30 per cent of working life: projected to lead to an SPA of 74 for those born since 2011.

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The report also said that there should be a single-tier state pension, with a starting rate of £180, and that employees should continue to pay NICs past their state pension age.

According to the UK government’s actuary department, based on existing Isle of Man policies, the NI fund will be exhausted by 2055. The report suggested this would run out earlier, in 2047.

Gerald Chase, director of Isle of Man-based Financial Options, said: “We have the same problems as the UK in terms of an ageing population and a reduced workplace, but perhaps we are a little bit further down the road.”