Finance Minister Davendranath Tancoo announced a phased increase in National Insurance contributions to protect the fund from insolvency and preserve benefits for future generations. The first 3 per cent rise takes effect on January 5, 2026, followed by a second 3 per cent increase on January 4, 2027, spreading the burden over two years to minimise impact on contributors while ensuring the sustainability of the system
Finance Minister Davendranath Tancoo has announced that the age for receiving a full National Insurance System (NIS) pension will gradually increase from 60 to 65, beginning in January 2028.
The change will be phased in over a ten-year period, with the retirement age rising by one year every two years until it reaches 65 in 2036. Tancoo said the move is aimed at securing the long-term sustainability of the NIS, which has faced growing financial pressure due to years of neglect.
“There will be no change for anyone who retires before January 1, 2028,” he assured. “Existing pensioners will not be affected and will continue to receive the full minimum pension of $3,000 at age 60.”
He said annual benefit expenditure now exceeds $6 billion, a 65 per cent rise over the past two decades, while benefit pay-outs have surpassed contributions since 2020, forcing the National Insurance Board to liquidate assets to meet payments.
To stabilise the Fund, Tancoo also announced a phased six per cent increase in NIS contribution rates: three per cent from January 5, 2026, and another three per cent from January 4, 2027.
“The PNM sat idly by while the warning bells sounded,” he said. “This Government will act decisively where the PNM refused to act.”
Tancoo said these reforms will extend the life of the Fund and protect benefits for over 200,000 citizens. “Under this Government, the NIS will not be allowed to fail. When UNC wins, workers and pensioners win.”
