Chief Minister Allan Bell has released figures to back up a major review of the Isle of Man's National Insurance Fund that's being carried out by specialist consultants.
The state pension fund is forecast to start collapsing in around 20 years' time and to run out altogether by the 2050s.
This year, £275 million is being spent on benefits, a third of the government's total gross expenditure, including £129 million on retirement pensions and £37 million on the Manx pension supplement. The NI Fund pays for £190 million of the annual benefits bill.
A government spokesman said: 'The £650 million Fund, which pays for State retirement pensions, the Manx pension supplement
and a range of other Social Security benefits, is heading for a dramatic decline as the proportion of retired people increases and benefits paid out of the Fund exceed NI contributions paid in.
'Over the next 30 years the number of over-65s is projected to almost double from 15,000 to 29,000. The National Insurance Fund is forecast to start collapsing in around 20 years time and to run out completely by the 2050s, leaving the younger generation with a bleak future in terms of State support for their retirement.'
The Council of Ministers is spending £1 million on the review, with the consultants due to report back this summer and the outcome presented to Tynwald 'in due course'.
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