In his weekly blog, Finance Minister Prof. Edward Scicluna discusses the various issues involved in any discussion on pensions.
He explains that solutions are not straightforward.
Sometimes they can be costly in terms of public spending. This is especially the case, he argues, when it comes to attempting to address pension anomalies, or addressing issues that concern the past.
However, he insists that solutions must be found, and that compensation can be staggered over time in line with what the country’s finances can afford at that point in time, so that anomalies are addressed.
Prof. Scicluna also notes that one particular concern is that today’s pensions are considered not as adequate as they were in the past. One reason is largely inflation. He also notes that Malta’s active labour participation must increase if the country’s pension system is to enjoy the same strength as those in leading EU countries like Sweden, Denmark, and Germany.
Prof. Scicluna also warns that according to economic forecasting, it is becoming clearer and clearer that today’s generation, as well as future generations, will not be able to enjoy the sort of pensions available today, and will risk falling into poverty unless the current pension scheme is not strengthened. This the government will be doing starting from the coming Budget.