The Chairman of the Pensions Strategy Group Mark Musu announced that the pensions strategy will be launched for public consultation tomorrow 17 June Government have been periodically highlighting the need for a restructuring exercise in the pension system and it seems that the first signs of life in this regard are round the corner. It is expected that there will be no rise in the National Insurance Contributions or retirement age.
The Maltese population is an ageing one, and within 15 years the number of workers supporting one pensioner is expected to fall from about four persons to two persons. A sustainable pension system is a must and has been highlighted on many occasions by the EU Commission. A fair balance approach between contributions and benefits across generations may be in the offing.
Currently a worker is only covered on the main employment for pensions’ purposes. Part-timers may opt to have more than one part-time employment working more than 40 hours in any one week, and yet our pensions system will cover the main employment. Undoubtedly on reaching retirement age this worker will fall into the poverty trap notwithstanding all efforts and long hours this worker has put during his working life.