Government spending on the state pension is expected to spiral 11-fold over the next six decades, latest projections indicate.
The report by the UK government’s actuarial department, to be laid before this month’s Tynwald sitting, suggests spending on the retirement pension will rise from £54.7m in 2011-12 to a staggering £638.6m by 2071-72.
It also shows the National Insurance Fund will run out sooner than previously thought - peaking at around 2036-37 but then declining steeply and running out completely by 2054-55, some five years earlier than indicated by the previous actuarial review.
Treasury Minister Eddie Teare said the figures vindicated the government’s decision to commission an in-depth review - and suggested critics of the £775,000 cost of bringing in consultants were ‘missing the wood for the trees’. ‘For some it’s convenient distraction but we are planning for the future.’