Pension inadequacy

Since 2003, I have written scores of unchallenged letters and articles on pension reform in both the English and Maltese press. I have also contributed the largest number of submissions on www.pensions. gov.mt (now no longer an active Website). So I read with great interest the article "Will the state pension be adequate?" (The Sunday Times, February 4).

My writings were more concerned with the age issue of the debate, so I focused my philosophy on "the more you work, the earlier you retire". This measure, as I had explained, was also hoped to boost productivity by discouraging excessive absenteeism and sick leave.

However, this fair-for-all proposal was unfortunately not adopted because it was going to adversely affect a glorified chunk of our population, and doubtlessly, all politicians treasure their sacred votes!

Recently, however, I received two e-mails: one from the Office of the Prime Minister and the other from the Ministry for the Family and Social Solidarity, telling me that if by 61 I would have already accumulated 40 years of contributions, I would be allowed to retire, even if this means that I would, of course, receive a lesser pension than one who opts to retire at 65. So please, bank officials and insurance representatives: stop alarming most people that they have to work till 65?

I am also starting to focus on the adequacy issue. I too agree that "adequate" means "satisfactory" and that "state pensions are not designed to make us rich in our old age". However, I will still remain consistent with my past arguments. I am not in favour of raising the retirement age to 65. I rather prefer to contribute that something extra every month. Money comes and goes but precious time never comes again!

Unfortunately, the pension reform as it stands, is a half-baked measure because we still do not know whether the NI contributions will increase, or if specific private pension schemes will become mandatory or not. This is discouraging many Maltese from taking on extra financial burdens, even though this pays off later - if you are still alive! So, the million euro question is: when will this dragging reform be completely settled?

For the time being, crafty bank and insurance people, please, stop bothering me with extra financial commitments.