UK pensions freedoms 'won't suit Island'

UK pensions freedoms 'won't suit Island'

Relaxing pension laws in the Isle of Man in the way the UK has, could cause the Treasury cash-flow problems.

That's the view of an Island pensions provider, which has studied the implications of the regime change. 

Since April, UK residents have been allowed to draw whatever sums they want from their pension pots, and no longer have to buy an annuity.

A call will be made in Tynwald next week for the Isle of Man to follow suit - despite opposition from ministers. 

The potential for people to spend the cash too soon then fall back on the state, is cited as a key danger.

Chief executive of Boal & Co Mark Kiernan says income tax paid on cash drawn from pensions is vital revenue for Treasury - and it wants a steady stream: