Pension freedoms soon to be introduced

'Good' response to consultation

Pension freedoms equal or better than those available in the UK remain on course to be introduced in the Island next spring.

Tynwald has this morning heard there was a good response to a consultation on plans to introduce an Island scheme to attract local investment and provide flexibility for people saving for their later years.

Since 2015 in the UK, a scheme has allowed UK residents over the age of 55 to withdraw their pension as a lump sum, with no need to purchase an annuity.

Treasury Minister Alfred Cannan said it would provide the Island with a more 'tax-efficient savings vehicle' with a tax free lump sum paid from the scheme, increased to 40 per cent of the fund value.