Pensions reform, government commissions World Bank for studies

The World Bank has been commissioned by government to start work on an actuarial study of the two-thirds pension system in Malta; an aggregated macro-economic study on fiscal incentives for voluntary pensions; and a study on education for personal financial management and savings.

19 July 2010, 12:00am
by Karl Stagno-Navarra

1 min read

Speaking during a national seminar on pension reform organised by audit firm PKF, parliamentary assistant Stephen Spiteri explained that government's Pensions Working Group was working towards the attainment of the next stage of pension reform and was currently consulting the various stakeholders.

"The goal that we seek in this pensions system reform journey is that of securing adequacy whilst retaining sustainability. We need to safeguard the adequacy of the pensions of future generations: our children, grandchildren, perhaps even grand-grandchildren."

"Thus, do we leave it to the young and others to decide and hope that they take the necessary decisions to provide protection for their future even though research shows that people are too often too caught up dealing with the here and now to worry about what will happen in 30, 20 years time? Or, shall we play the ‘paterfamilias’?

"Do we introduce incentives to render it attractive for people to save? Saving for retirement is differed income," Stephen Spiteri asked.

Malta was still a first pillar pension system where people working today were paying the pension of people who were in retirement today. In turn people working today hoped that there would be enough people working when it was they who were in retirement.