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State pension set for radical shake up

Wed, 05 Nov 2014

Major proposals to overhaul the existing state pension system have been unveiled today.

A 640-page report from consultants Ci65 says the current system is out of date and broken.

It claims this will result in the exhaustion of the National Insurance fund, from which state pensions are paid, by 2047 - seven years sooner than initially thought.

The report recommends a raft of changes to mitigate this risk - among them boosting the retirement age, increasing NI contributions, totalling an additional £10 million, and introducing a new flat rate pension of £180 - the Manx pension supplement will be phased out over the next 20 years.

It's unlikely people already receiving pensions would feel the impact, however estimates reveal the retirement age for a 30 year old would now stand at 74.

Treasury MHK Bill Henderson MHK says although Tynwald is yet to approve anything there is a feeling that change is essential:

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Media

• Bill Henderson MHK