Minister says pension debate needs less alarmism

Finance minister Edward Scicluna told his audience at a Business Observer breakfast achieving a sustainable and adequate pension is through sustained economic growth and responsible and effective public governance.

“A government must ensure that every initiative that is undertaken results in tangible economic growth. If this is ensured, then one can guarantee an adequate and sustainable pension. The NSO has recently published figures that show that the Maltese economy is achieving economic growth rates and labour participation rates which the 2006 pensions model only thought were achievable in 2025. Rates for immigration need also updating,” Sciclina said.

He emphasised the importance of an ‘outside-the-box’ approach, saying pensions should not be rigid ‘pillars’ but analysed through the national debt, and annuity schemes for retired persons who lack cash despite their substantial property ownership.

Scicluna called for all stakeholders to avoid confrontational and alarmist stances on the issue of pensions, urging more consensus.

“Long-term stability in the pension system can only be achieved through sustained economic growth and good fiscal governance,” he said.

“The approach towards pension reform needed to be a continuous updated effort, instead of sporadic and intermittent approaches. One should not attempt to address all issues at one go.

“Pension reform is a discussion we should have often, and regularly, so that the system can be improved over time to meet a constantly-changing economic landscape. It is extremely positive that we are having this debate today, so that we can keep moving forward and ensuring that pensions remain viable and sustainable,” Scicluna said.