National consensus to keep pensionable age at 65 despite international pressure

Both political parties in Malta refuse to raise the pension age, despite the fact that the average European pensionable age is expected to rise by two years in the coming years.

During an appearance on TVM's Xtra on Monday, Social Policy Minister Michael Falzon explained that under a previous Nationalist administration, the pensionable age had already risen from 61 to 65.

"Even though there is a push to raise it to 67, it will remain at 65," Falzon said.

The recommendation to raise pensionable ages above 65 is often made in European budgetary forecasts as well as in recommendations from international credit rating agencies, as well as the IMF in its annual evaluation rounds. 

Currently, in Malta, the pensionable age is determined by the year of birth and ranges from 62 to 65 years. 

Individuals born between 1952 and 1955 are eligible for pension at 62 years, those born between 1956 and 1958 at 63 years, and those born between 1959 and 1961 at 64 years. 

For those born between 1962 and 1968, the pension age is 65 years, and for those born on or after January 1st, 1969, it remains 65 years.

(Photo: Xtra) Contributions required from the age of 18 till retirement.

While political parties in Malta appear to be on the same page regarding this issue, a similar discussion in France took an ugly turn, where Emmanuel Macron's government pushed through an unpopular plan to raise the pension age from 62 to 64.

According to Falzon, "the mess came about in France because the country lacked the funds to finance the pension pot". 

However, unlike France, Malta has ample contributory benefits despite having the lowest fertility rate in Europe.

He said a shortage of young workers is being filled by foreign workers. “We have 200,000 employees who contribute to social security funds... These people are not coming to Malta to sunbathe," Falzon said.

PN spokesperson David Agius also pointed out that both the Labour Party and the Nationalist Party have agreed not to raise the pension age or the percentage of contribution, which currently stands at 10%.