Gov’t Targets Pension Reform, Excludes Wealthy Retirees

The government has announced plans to reform its old-age pension scheme, ending the MVR 5,000 monthly pension for high-income citizens over 65. 

Starting in April next year, the pension will be targeted to benefit only low-income senior citizens, according to the 2025 budget.

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This proposal is part of a broader effort to reduce government spending. The Finance Ministry stated that revising the old-age pension system is central to making pension expenditure more sustainable. 

Under the new policy, only citizens who reach the age of 65 after April 2025 will be affected by this change, ensuring the pension continues to support those with financial need.

In addition to the pension reform, the government aims to fully implement the new pension pay framework, align allowances across institutions, and update early retirement regulations. The Finance Ministry is confident these measures will help stabilise pension-related expenses while safeguarding the entitlements of eligible citizens.