25-year demand — what goes out, what comes in £m, FY2024-25 prices Tick items to build up each side — anything ticked in the same column adds together
"Left to find" is a balancing item, not a funding source — both entries are whatever remains after everything else, so the totals meet by construction rather than by evidence. Full explanation under Data Governance & Methodology below.
Balances behind those flows same years, same scale of money — stocks, not annual flows
The National Insurance Fund is a real reserve, exhausted during 2047-48. The Public Sector Pension scheme has no fund at all — the flat line is the whole position, not an omission.
Total paid out (all items)
Total Income (selected)
Public Sector Pension paid out
State Pension paid out
Data Governance & Methodology
The two reference lines, and what "Left to find" really is. Both "Left to find" entries are calculated as whatever remains after everything else — payments out, minus contributions in, minus the NI Fund's own investment return, minus anything the levers divert. With every income item ticked, the dashed Total Income line meets the solid Total paid out line exactly. That equality is true by construction rather than by evidence, and it means these two residuals absorb every error in the model. The four paid-out items are drawn unstacked, each showing its own scheme at face value, which is why an explicit total line is needed: stacking them would make the upper lines cumulative and no value on the chart could then be read directly. Both residuals are floored at zero, so when contributions outrun payments the income line rises above the total-paid-out line rather than a negative bar appearing. On the PSPA side the residual genuinely falls on General Revenue in the year it arises. On the State Pension side it is drawn down from the National Insurance Fund — until that Fund is exhausted during 2047-48, which now happens inside this chart rather than beyond its edge. From FY2048-49 the same shortfall is still there, but there is no longer a fund to meet it. Nothing in the flow chart changes shape at that moment: the money still has to be found, only the source runs out.
The balance panel. Two schemes, two very different positions. The National Insurance Fund is a real reserve: still accumulating today, turning over around the middle of the next decade, exhausted during 2047-48 — which is why the window runs to FY2049-50 rather than stopping short of it. The Public Sector Pension scheme has no fund at all; its PSEPR buffer was drawn down through FY2023-24 and has been at zero since, so the flat line is the whole position rather than an omission. Every pound of PSPA pension is paid from that year's contributions plus a top-up from General Revenue. Read the panels together: the Fund's decline is what pays the State Pension shortfall above it, and when it reaches zero that shortfall does not disappear — it moves onto General Revenue, alongside the PSPA top-up that was always there.
On covering pensions by employing more people. Because contributions are (active members) × (salary), headcount growth raises contributions immediately and raises liabilities only decades later, so it always improves the near-term picture. It should be read with three things in mind. About two-thirds of each contribution is the employer share, which is General Revenue — so most of the apparent new income is the government paying itself. Members' own contributions fund roughly 22% of the PSPA bill; the rest is public money either way. And every additional active member accrues a pension this model prices only through the 65+ cohort, so the later cost is understated here relative to the earlier benefit. Headcount growth is therefore a deferral, not a funding source.
"State Pension payments" = Basic + Age Addition + Premium + new single-tier MSP + Pension Supplement, all combined (estimated split from FY2018-21 per-benefit actuals, applied to FY2021-25 aggregate NI-funded totals). Both expenditure items are gross liabilities (total benefits payable), not netted against contributions. On the income side: "Employee Contributions" and "Employer (Dept) Contributions" split PSPA's combined contribution total using the same real Unified Scheme 2011 employer-share ratio used on the Public Sector tab. "NI Contributions" is the real, GAD-sourced contributions figure from the same 2023-GD-0005 report the State Pension tab's own chart uses (interpolated between its published anchor years) — not modelled by this tab, borrowed from the real series. "Dept. cuts diverted to pensions" and "Tax increase diverted to pensions" are the revenue raised by those two levers, redirected here to close the PSPA gap (both are £0 unless their sliders are moved). "Funding the Gap (PSPA)" = PSPA gross minus PSPA's own contributions minus any diverted cuts/tax revenue (can be negative, i.e. a surplus, if diverted revenue plus contribution growth outpaces benefit growth). "Funding the Gap (State Pension)" = State Pension payments minus the real NI Contributions figure — this is the closest this tab comes to reproducing the real NI Fund's year-by-year draw-down, using this tab's own demographic-driven demand against GAD's own real income, so treat it as indicative rather than a substitute for the GAD-sourced chart on the State Pension tab. Two changes on 15 August 2026. The NI Fund's own investment return is now shown as income on the State Pension side, taken from the annual reconstruction built for the State Pension tab — this tab previously ignored it entirely, which overstated what had to be found from elsewhere. And both residuals are now clamped at zero: left unclamped they went negative whenever contributions and diverted revenue exceeded payments, drawing a downward red band labelled as a top-up when the truth was a surplus. A surplus now shows as the dashed Total Income line rising above the paid-out lines, which is what a surplus looks like. The consequence is worth stating: ticking every income item makes the totals coincide exactly only while there is a shortfall. In surplus years income legitimately exceeds outgo and the chart now says so rather than hiding it in a negative bar.
On the State Pension residual. It is labelled "drawn down from the NI Fund" rather than General Revenue, and over this tab's twenty-year window that is right: the Fund is not exhausted until 2047-48, two years past the right-hand edge of the chart. Nothing on the State Pension side of this tab falls on General Revenue within the period shown — the General Revenue problem begins just after the window closes, which is itself worth noticing. Ticking all income items makes the total match the two expenditure lines added together while a shortfall remains. The two Paid out items are drawn as unstacked lines, each showing that scheme's own payments, so they can be read against each other directly. "Total Income (selected)" is the dashed line and sums only whichever income items are currently ticked, so it moves as you tick boxes and drag levers.
Bars = FY2025-26 department employee-cost budgets (Pink Book 2025-26 Table 14B), grown at 3.0%/yr. Red segment = amount removed by the "Dept. cuts diverted to pensions" lever. Manx Care and Education are protected by default (63% of total department paybill between them) but their checkboxes in the levers panel can be unchecked to stress-test cutting them too.
"Top up from Reserves" (stat cards and table) = PSPA net deficit (gross minus contributions), plus the NI Fund backstop shortfall if that stress-test toggle is on — a narrower, backstop-gated figure than the chart's own "Funding the Gap" lines above, kept as-is for consistency with the levers and department-budget sections. "After levers" additionally nets off whatever the "Dept. cuts" and "Tax increase" levers are diverting. FY2024-25 figures are confirmed PSPA/NI Fund actuals; everything to the right compounds from sourced or clearly-flagged assumptions.
Price basis. The model is built and stored in cash (nominal) terms throughout, which is how PSPA, the Government Actuary and the Pink Book all publish. The "constant prices" toggle at the top of the page converts at display time only — no stored figure is altered, and switching back and forth is lossless. History to FY2025-26 uses the Isle of Man's own measured CPI (financial-year averages, April–March; Statistics Isle of Man Historic Data Sets December 2025, index January 2008 = 100, rebased here to FY2024-25 = 1.000); FY2025-26 is a part-year in that release, covering April–December 2025 only. Beyond that, no Manx inflation projection is published by anyone, so future years are chained off the last actual at a user-set rate defaulting to 2.0% — the figure Hymans Robertson's benefit-indexation assumption implicitly treats as long-run inflation. That is an assumption, not a measurement, which is why it is a control rather than a constant. Because deflation applies a single common factor to every item in a given year, the identity that income sums exactly to expenditure holds in both bases.
Why inflation does not rescue this. Inflation erodes debt only when the debt is nominal and fixed. Neither condition holds here. The Isle of Man is a net creditor, not a net debtor — the National Insurance Fund is an asset of about £1.03bn, so inflation destroys its real value rather than a liability's. GAD's own report records exactly this: the Fund balance falls in 2023-24 in constant price terms "due to high CPI from the previous year increasing benefits". And the liabilities are index-linked by statute and policy — the Triple Lock is assumed to continue indefinitely, at around 4.2%/yr in the long run — so inflation passes straight through to the benefit line while the asset side is merely nominal. Higher inflation makes this Fund's position worse, not better. What does shrink the liability in real terms is uprating by less than inflation, which is a political decision rather than an economic event, and it falls entirely on pensioners: GAD models it as a variant, and dropping the Triple Lock to earnings-only after April 2025 moves Fund exhaustion from 2047-48 to 2051-52. Four years, bought from pensioners. Note also that the deflator control on this page rescales but does not re-model. Raising it alone makes every figure look smaller while nothing real has changed — at 6% inflation the 20-year gap reads £6.6m instead of £13.8m purely as an artefact of the arithmetic. Raise the three uprating levers alongside it and the gap goes to £33.5m: worse than where it started, because adding the same number of percentage points to every rate compresses real differentials rather than preserving them. Inflation is not a way out of this. It is a way of making the way out harder to see.
IOMG headcount is an assumption, and it is now set separately. PSPA contributions are (active members) × (salary), so the number of public servants assumed to be paying in is as consequential as the rate they are paid. Until August 2026 active membership was bolted to the population scenario selected at the top of the page: choosing a higher-migration path also hired civil servants, and their contributions were then counted as income against the pension bill. On the Island's own "Our Island, Our Future" target path that amounted to assuming roughly 4,350 additional active members by FY2044-45 — an implicit staffing policy arriving through a demographic control. Headcount now defaults to flat at the FY2024-25 actual of 10,854, with population-tracking available as an explicit tick-box for comparison. Pensioner headcount continues to follow the 65+ cohort, which is a genuine demographic driver rather than a policy choice. Two cautions on any setting above flat: the employer share of the extra contributions (about 66%) is General Revenue, so it is a transfer within government rather than new money; and every additional active member is a future pensioner whose accrual this model captures only through the 65+ cohort, so headcount growth flatters the near term more than the long run.
On the real-terms wedge. The three price levers — benefit indexation 2.0%, salary growth 4.0%, State Pension uprating 3.75% — are the published assumptions, but they are also, taken together, the model's most consequential input. At 2% assumed inflation they imply public-sector salaries rising 2% a year in real terms indefinitely while PSPA pensions hold flat in real terms, and the State Pension rises 1.75% a year in real terms. Those spreads, compounding, are what drive the PSPA funding gap towards closure in the long run — not the ageing population, whose contribution to the trajectory is a fraction of a percentage point a year. Any reading of this tool that treats the long-run PSPA result as demographic is reading it wrong. All three are now sliders; set salary growth equal to benefit indexation and the result changes character entirely.
Sources & method: PSPA base (£143.3m gross / £95.2m contributions, FY2024-25) and demographic decomposition (2%/yr benefit indexation, 4%/yr salary growth — Hymans Robertson long-term assumptions per PSPA Board minutes 25 May 2020). Pensioner and active-member headcount growth comes directly from the population scenario selected at the top of the page (the same pyramid-driven GUS model used on the Public Sector tab) rather than a fixed historical CAGR — switch the scenario pill and this tab's PSPA figures move with it. State Pension core and Pension Supplement bases from LBB Table 6.8g/6.8h actuals FY2018-19 to FY2020-21 (retirement-family = 86.3% of total NI-funded benefits ex-COVID, applied to FY2024-25 aggregate £277.7m). The State Pension side's volume growth is locked to the "Actuarial Assumptions (300/yr)" population path regardless of which scenario pill is selected for PSPA — it deliberately does not follow Historical/Recent/Target, since GAD's own 300/yr migration assumption is what actually underlies the real State Pension tab's NI Fund figures, and letting this side swing with the PSPA scenario would mean silently second-guessing GAD's own number. Pension Supplement statutory phase-out: no awards to anyone reaching pension age after 5 January 2039 (gov.im); modelled here on its observed −3.6%/yr decline, a conservative proxy for the true post-2039 acceleration, independent of population scenario. Department budgets: Pink Book 2025-26 Table 14B. This is a scenario tool for exploring trade-offs, not a forecast — it uses a different, bottom-up parametrized model of the state pension than the Government Actuary's own published baseline shown on the State Pension tab; the two will not match line-for-line, by design.