In a landmark announcement during the 2026 national budget presentation on October 13, Finance Minister Davendranath Tancoo unveiled sweeping reforms for the National Insurance Scheme (NIS). Without immediate action, Tancoo warned, the fund could face collapse within the next decade, leaving hundreds of thousands of retirees without income protection. The proposed measures include a phased increase in contribution rates and a gradual rise in the retirement age from 60 to 65 over the next ten years. Effective January 5, 2026, contribution rates will rise by three per cent, with another three per cent increase scheduled for January 4, 2027. Starting in January 2028, the retirement age for full NIS pensions will incrementally increase by one year every two years, reaching 65 by 2036. Tancoo assured that those retiring before January 1, 2028, and all existing pensioners will remain unaffected. Early retirees will still qualify for reduced pensions, with a minimum of $3,000. The Finance Minister emphasized the urgency of these reforms, citing years of inaction under the previous administration that allowed the NIS’s financial challenges to deepen. Annual benefit payments now exceed $6 billion, a 65 per cent increase over two decades, while payouts have consistently outpaced contributions since 2020, forcing the National Insurance Board (NIB) to liquidate assets. The 11th Actuarial Review projected fund depletion by 2033 or 2034 without intervention. Tancoo criticized the former PNM government for ignoring repeated warnings and delaying necessary reforms. He pledged that under his administration, the NIS would not be allowed to fail, ensuring protection for over 200,000 vulnerable citizens. Additionally, private pensions will be exempt from income tax starting January 1, as previously promised.