State pension triple lock could be scrapped in British territory

The ssate pension triple lock could be DITCHED in a British territory due to spiralling costs. The Isle of Man is considering scrapping the state pension triple lock in a bid to save its social security system, a government report has revealed.

Higher life expectancy means the island’s state pension fund is projected to run out by 2047 and that money would have to come from other sources to maintain payments to pensioners. Removing the triple lock is among several options that have been modelled and one of only two yet to be dismissed, the report shows.

Treasury minister Alex Allinson said that “a national conversation” was needed. He added: “With an ageing population, the Isle of Man is facing increased health and welfare spending. I believe we need a national conversation about how we preserve the long-term future of our state pension system both for the pensioners of today and of tomorrow.

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“Over the coming months I will be engaging with Tynwald Members to develop a plan that will ensure the long-term sustainability of the current scheme. A further report will be provided prior to next year’s Budget.” The report reveals another option included bringing forward the state pension age increase by seven years, but calculations showed this would only delay exhausting the fund by one year.

Increasing National Insurance contributions is also being considered, but increasing the number of years needed for a full state pension was ruled out. The triple lock was introduced by the Conservative-Liberal Democrat coalition government in 2010.

It was designed to ensure the value of the state pension was not overtaken by the increase in the cost of living or the working population's income. The government has been keen to point to the above inflation generosity of the triple lock after its decision to scrap the winter fuel payment for most households.