THE island’s state pension age is set to rise by one year within the next 10 years, if Tynwald approves the latest proposals.
The measures, which will bring the island in line with the UK will see the state pension age for women rise to 65 by 2018 and to 66 for both men and women by 2020.
In the UK this is to be followed by another rise to 67 by 2028 and further increases in the future.
Social Care Minister Chris Robertshaw MHK said: ‘This review of the Manx National Insurance Fund has highlighted the need to review our pension policy and address the fact that people are living longer and therefore should expect to work longer to fund their retirement. This is fair as it will enable each generation to enjoy the state pension for roughly the same number of years.’
The move follows publication of the latest review of the Isle of Man National Insurance Fund which examines the five years ending in March 2007. The report, to be laid before the February Tynwald sitting, finds increasing life expectancy would see the current pension fund of £650m exhausted by 2050 if no action were taken.
However, the Isle of Man has reciprocal arrangements with the UK on social security including the state pension so, subject to Tynwald approval, it will mirror the measures Westminster takes to conserve funds.