Tynwald backs concept of pensions freedom

Treasury must bring proposals forward by October

The Isle of Man has moved a step closer towards allowing residents much greater control of their pensions. 

Tynwald has voted to back a motion by Michael MHK Alf Cannan, which called for support in principle for the same pensions freedoms as are now available in the UK. 

Since April, UK residents have been able to spend their pension pots as they wish, with no requirement to buy an annuity.

During a long debate, members in favour of change argued the Isle of Man would be left behind if it didn't embrace a new era of pensions freedoms.

A move by Treasury Minister Eddie Teare to review options, based on the UK's experience, was defeated.

He has previously voiced concerns pension pots could be exhausted too early, creating a drain on the state. 

But Mr Teare's amendment was defeated and Tynwald voted by a majority to back Mr Cannan's motion. 

Treasury must now bring forward proposals for liberalising Manx pension law by October.