Pensions are set to increase by 2.3 per cent on August 16, while rates paid into the Contributory Pension Fund are to rise by 4.81 per cent.

As a result, the basic contributory pension will rise from $1,179 to $1,206 per month, and the maximum pension will increase to approximately $1,752 per month.

Wayne Furbert, the Junior Minister of Finance, said the move balanced supporting seniors to reflect the rising cost of living while safeguarding the fund’s sustainability.

He added: “The Contributory Pension Fund holds over $2.25 billion in assets, which equates to nearly ten years of benefit payments even without new contributions.”

Mr Furbert said raising contributions would “preserve this strength”.

It marks the seventh consecutive annual pension increase since 2017

“These increases matter, especially for those who depend solely on social insurance,” Mr Furbert said.

He added: “Our seniors built Bermuda. They deserve to live with dignity and security.

“This Government will continue to honour them with fairness, respect and responsible leadership.”