Tynwald has approved plans for a new single-tier Manx state pension

Legislation has now been approved so that it can be brought in in April 2019

The new pension will apply to people who reach state pension age on or after April 6th – it will see people receive around £180 per week when introduced.

To qualify for the full rate of pension a person will need to have at least 35 qualifying years of National Insurance contributions in the Isle of Man.

People who have accrued significant amounts of additional state pension under the current earnings-related scheme will have those rights protected.

People who have been contracted out of the state additional pension scheme for long periods are unlikely to receive the full amount.

However they will not receive any less under the new scheme than they would have under the existing scheme.

People retiring in the Island who have paid National Insurance contributions in the UK will most likely be entitled to a separate state pension from the UK authorities.

Treasury Minister Alf Cannan says: “The new Manx state pension is being introduced with two primary aims.

“Firstly to ensure the long-term viability of the Manx National Insurance Fund, so that we can afford to pay state pensions for at least the next 70 years.

“And secondly to provide for a simple pension which everyone can understand and can therefore plan for their retirement with a degree of certainty.”

The introduction of the single-tier pension means that contracting out of the additional state pension scheme will cease.

Employers and employees who currently pay reduced rates of National Insurance contributions will have to pay the same rates as those who are currently not contracted out.

Minister Cannan adds: “The legislation approved by Tynwald also realigns the state pension in the Island with the UK state pension age for people born between 6th April 1960 and 6th April 1977.

“Consequently, those born between 6th April 1960 and 5th March 1961 will have a pensionable age of between 66 years and 1 month and 66 years and 11 months, whilst those born after 5th March 1961 but before 6th April 1977 will reach state pensionable age on their 67th birthday.”

Further orders and regulations will be brought to Tynwald over the next four months in relation to the new pension arrangements.

MAC Group announce Senior Promotions

MAC Group announce Senior Promotions

MAC Group have announced the exciting promotion of Ciaran Broad and Tom Wilson to Senior Independent Financial Adviser’s to further strengthen the MAC Financial senior team. Jon McGowan, Group CEO explained “We are incredibly pleased to announce...

MAC Group appoints new Associate Directors

MAC Group appoints new Associate Directors

MAC Group, the Island’s largest Corporate and Private Client IFA, is pleased to announce the appointment of three Associate Directors; Rebecca Netten and Ed Walter for MAC Financial, as well as Peter O’Donnell for MAC Commercial.  These...

COVID-19 Update

COVID-19 Update

Good morning everyone and a happy new year to you!The Isle of Man has been doing a fantastic job of keeping our community safe - so let's keep it up! Following the media release regarding the recent positive COVID-19 cases, if you, or any of your...

Merry Christmas and a Happy New Year

Merry Christmas and a Happy New Year

As a thank you from MAC, we would usually be sending small gifts and cards to show our appreciation. This year we've chosen to donate the money to the Isle of Man Foodbank and the Motor Neurone Disease Association - Isle of Man on behalf of all our...

Anna Beth

Anna Beth

There's quite a lot of big news here at MAC that of course is beginning to circulate in the reliable Isle of Man ways, but we're very excited about sharing it with you properly ourselves soon! In the meantime, we're pleased to introduce Anna Beth,...

COVID-19 Wellbeing Hub and Charity Donations

COVID-19 Wellbeing Hub and Charity Donations

MAC Group staff donate part of their salary to support the NHS on the Island and MAC announces imminent launch of Covid-19 Wellbeing Hub which will be free for individuals and businesses on island to access. The challenges to the community and...