The new Manx state pension will affect people in different age groups differently.

Tynwald last month approved an order which introduces a new £180 a week flat rate single-tier pension from April next year.

Treasury Minister Alfred Cannan promised his department will now start to provide more information about how the new system will work and what people might expect to receive.

There will be transitional provisions to ensure people do not lose out in the switchover to the new scheme and the reforms won’t affect the 19,500 existing state pensioners.

But there are concerns longer-term that new retirees will lose out.

The Manx pension supplement is being phased out from next year by 5% each year.

There are also concerns about the scrapping of the guaranteed minimum pension introduced as a top up mechanism for those who opted out of the State Earnings-Related Pension Scheme (SERPS).

Mr Cannan confirmed the inflationary increases applied to guaranteed minimum pensions accrued prior to April 1988 will no longer apply to individuals who reach state pension after April next year.

He explained: ’This is a natural consequence of replacing a two-tier state pension (basic retirement pension and additional state pension) with a single-tier pension.

’However, individuals reaching state pension age shortly after April 6 2019 will still be entitled to a significant amount of the Manx pension supplement and individuals reaching state pension age in later years may be able to accrue extra entitlement through the new Manx state pension.’

He added: ’It is also important to understand that the changes introduced under the new Manx State pension will affect people in different age groups differently.

Mr Cannan cautioned against comparing the new Manx state pension to the UK’s as the demographics are different.

He said it is not helpful to focus on one aspect of the reforms as all the planned changes should be considered together, including the commitment keep the triple lock uprating until 2022.