Pension reform removes Means Test and introduces greater flexibility from age 60

A series of measures aimed at strengthening Mauritius’ pension system, including the permanent removal of the Means Test for the Basic Retirement Pension (BRP), greater flexibility in accessing pension benefits from the age of 60, and the proposed establishment of the second-pillar contributory National Pension Fund 2.0, were outlined yesterday afternoon by the Minister of Social Integration, Social Security and National Solidarity, Mr Ashok Kumar Subron, during a press conference held in Port Louis.

The press conference was attended by the Minister of Foreign Affairs, Regional Integration and International Trade, Mr Dhananjay Ramful; the Minister of Labour and Industrial Relations, Mr Muhammad Reza Cassam Uteem; the Junior Minister of Finance, Mr Dhaneshwar Damry; and the Junior Minister of Social Integration, Social Security and National Solidarity, Mr Kuvalayan Kugan Parapen.

Minister Subron announced the permanent removal of the Means Test, stating that all Mauritians would have the right to opt for an adjusted pension upon reaching the age of 60, irrespective of their employment status or income level. He stressed that no existing pension entitlement would be withdrawn and reaffirmed that pension would remain a universal right for all Mauritians.

He further explained that the new framework would introduce greater flexibility in accessing pension benefits, allowing individuals to decide whether to claim their pension from the age of 60 or at a later stage. Those opting to receive their pension at 60 would be entitled to an actuarially adjusted amount, while those choosing to claim it later would benefit from a higher pension amount, he added.

Minister Subron also spoke about the proposed introduction of the National Pension Fund 2.0 as the second pillar of Mauritius’ pension framework, alongside the universal State pension. He explained that the contributory scheme would be developed through consultations with workers, trade unions and other stakeholders, with the aim of strengthening pension protection for future generations. He assured that acquired rights would be safeguarded and that no worker would be disadvantaged under the proposed system.

For his part, Junior Minister Parapen explained how the new pension option would apply during the transition period. He recalled that the previous reform had introduced a gradual increase in the eligibility age for the BRP from 60 to 65 years, with the transition scheduled to take place progressively over a five-year period.

He explained that, under the revised approach, persons reaching the age of 60 during the transition period would have the option to receive their pension at that stage instead of waiting until the age at which they would have qualified for the full pension under the previous timetable. Those opting to claim their pension earlier would receive an actuarially adjusted amount, calculated based on the period by which the claim is made in advance, he stated.

Mr Parapen further added that the adjusted pension amount would continue to benefit from annual cost-of-living adjustments and statutory age-related increases. He also indicated that a simulation tool would be developed to enable individuals to estimate their pension entitlements based on their date of birth and preferred retirement option.

11 July 2026

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Topics: Pensions