The New Retirement Pension was brought as a major and historic change to Mauritius’ retirement policy in the 2025–2026 National Budget, one that is set to reshape the future of pension entitlements across the island. Announced by the Minister of Finance, Dr Navin Ramgoolam, and confirmed on Saturday 7 June 2025, the New Retirement Pension policy outlines a progressive increase in the eligibility age for the Basic Retirement Pension (BRP)—commonly known as the universal pension—from 60 to 65 years.
Recent announcements regarding the pension system include important changes that will affect many people. To clarify, it’s helpful to understand the difference between retirement and a pension.
The main change concerns the age at which you can start receiving the Basic Retirement Pension (BRP).
The Basic Retirement Pension (BRP), also known as the universal pension, is a basic payment currently received by individuals from a certain age, without needing to have made specific contributions.
The most significant announcement is that the age of eligibility for the Basic Retirement Pension (BRP) is being progressively increased. This age was previously set at 60 years. It is now being raised to 65 years.
The Ministry of Finance has unveiled the roadmap for the Basic Retirement Pension’s eligibility age, phasing in changes over the next five years. These new terms and conditions, issued on Saturday, June 7th, will take effect from September 1st of this year. The following schedule provides a comprehensive breakdown of the eligibility criteria for individuals who have reached the age of 60.
• If you turn 60 between September 1, 2025, and August 31, 2026, you will become eligible for the pension from September 1, 2026 (at age 61).
• If you turn 60 between September 1, 2026, and August 31, 2027, you will become eligible for the pension from September 1, 2028 (at age 62).
• If you turn 60 between September 1, 2027, and August 31, 2028, you will become eligible for the pension from September 1, 2030 (at age 63).
• If you turn 60 between September 1, 2028, and August 31, 2029, you will become eligible for the pension from September 1, 2032 (at age 64).
• If you turn 60 on or after September 1, 2029, you will become eligible for the pension from September 1, 2034 (at age 65).
The age of eligibility for the Basic Retirement Pension (BRP) was reviewed and increased primarily for the following reasons:
1. Unsustainability of the Basic Retirement Pension (BRP) in its Current Form: It is widely recognised that the BRP, currently representing a significant portion (26 %) of the recurrent budget, is clearly unsustainable. The measure to increase the age is described as a step taken to improve the sustainability of the pension system.
2. Mounting Fiscal Pressures: The government is facing mounting fiscal pressures from the pension system, which necessitated addressing this issue, the New Retirement Pension. This change is considered a necessary step for fiscal consolidation.
3. Demographic Changes: A major factor contributing to the unsustainability is that the elderly population is growing more rapidly than the working population. This demographic trend stands as a serious threat to the sustainability of the BRP and calls for urgent redress. An aging population has exerted increasing pressure on public finances for many years.
4. Supporting the Pension Fund: The objective behind the increase in eligibility age is to support the pension fund. It is seen as a way to relieve pressure on the system and counter the increasing pension deficit.
5. Long-Term Sustainability and Future Generations: This decision, new retirement pension format was made to ensure long-term fiscal sustainability and to do what is considered best for future generations, rather than prioritizing political gain.
6. Alignment with Retirement Age: While not the primary stated fiscal reason, it is also noted that increasing the BRP age to 65 aligns it with the general retirement age.
This measure is described as a “courageous, but unpopular measure “necessary to address the inherited financial situation and ensure budgetary balance.
While the eligibility age is increasing, the government has kept several social measures in place:
- The Revenu Minimum Garanti will continue to ensure a monthly income of at least Rs 20,000 for full-time workers.
- The Equal Chance Allowance of Rs 2,000 remains available for households earning less than Rs 20,000.
- CSG-linked benefits, such as the Income and Child Allowance, will be phased out gradually by 2027, but will continue in full for families on the Social Register of Mauritius (SRM).
The recent changes to Mauritius’s Basic Retirement Pension (BRP), shifting the eligibility age from 60 to 65, come with both benefits and drawbacks you should understand.
On the “pros” side, this decision aims to make our national pension system more stable for the long term. With an aging population, raising the age helps ease financial pressure, ensuring the pension fund remains healthy for future generations. It’s a tough but necessary step to secure the country’s overall financial well-being.
However, the “cons” are clear. For many, waiting longer for their pension creates a significant financial challenge, forcing adjustments to retirement plans and potentially requiring them to work for an additional five years. This could mean less personal time in retirement or needing alternative income sources.
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