Manx workers and businesses consulted on compulsory pensions

Image source, IOM GOV

Image caption, Mr Cannan said the consultation covered "an extremely important issue"

Compulsory workplace pensions could be introduced on the Isle of Man as almost half of the island's under-35s are not saving for retirement, the government has said.

Currently, Manx employers are not legally obliged to offer workers a retirement savings scheme.

A consultation will seek views on a possible government-run scheme and additional private sector pensions.

Treasury Minister Alfred Cannan said it was "an extremely important issue".

Research conducted in 2018 showed up to 15,000 Manx workers were not paying into an additional pension scheme and would rely solely on the state pension in older age.

The government said the current opt-in system for additional pensions was "not encouraging sufficient provision".

A new Manx state pension introduced in April will see pensioners who have made 35 years of National Insurance contributions receive a weekly allowance of 拢184.

That figure is 拢111 below the figure the government believes an average single person in rented accommodation needs to live comfortably.

The roll-out of the introduction of compulsory workplace pensions in the UK began in 2012.

Mr Cannan said the seven-week consultation would "enable us to... assess the role government may play in helping people save for retirement".