Useful information
About the Pensions Freedom Scheme (PFS)
What is the Pensions Freedom Scheme (PFS)?
Since 6 April 2018, the Isle of Man introduced a new, more flexible pension regime known as the Pensions Freedom Scheme (PFS).
A PFS is a defined-contribution pension arrangement designed to give individuals more control over how and when they access retirement funds.
Key features
Access Age
You may begin accessing benefits from age 55 (or earlier in certain exceptional circumstances, e.g. ill health) under the PFS regime
Older pensions established under prior rules may have different access ages
Tax-Free Lump Sum
Under PFS, you can take up to 40% of your accumulated pension fund as a tax-free lump sum at retirement
This is a more generous allowance than under older Isle of Man pension rules, where the tax-free lump sum was typically 30%
After taking your PCLS, how and when you draw the remainder is up to you (subject to taxes)
Withdrawals & Income Options
You may make withdrawals (or take income) from the remainder of your pension fund at times and amounts you choose (i.e. ad hoc or periodic) after taking your tax-free lump sum