Ivan Camilleri, Brussels
Malta worst hit by aging population
Malta risks being one of the EU countries worst hit by an aging population in 50 years' time, according to study on aging issued by the European Commission.
By 2060, Malta would have to fork out 13.4 per cent of its gross domestic product on pensions, almost double today's expenditure of 7.2 per cent.
The study identified Malta as one of the most severely-hit EU member state in relation to increased old age expenditure together with Luxembourg, Greece, Slovenia, Cyprus, Romania, Spain, Ireland and Belgium, which would all see a rise of almost seven per cent in public spending related to aging.
The study noted that, although Malta's population was expected to decrease by 2060, it would have nine pensioners for every 10 working citizens.
Although some reforms in pension legislation had been implemented, this was not enough and Malta had to do more to avoid a severe strain on its public finances.
The EU study showed that Europe's population was living increasingly longer and in better health.
However, it stressed that aging populations also posed major economic, budgetary and social challenges.
While the first priority was to tackle the recession, the EU could not lose sight of the necessary policies and reforms to ensure the elderly had decent pensions, access to health and long-term care without putting an unsustainable burden on future generations.
The study said governments had a window of opportunity before the baby boom generation retired to implement policies that addressed the challenge while being compatible with the need to support the economy at this juncture.
Projections agreed with member states put the increase in age-related expenditure at an average of 4.75 percentage points of GDP in the EU by 2060.
In the same period, the EU would move from having four people of working age for every person aged over 65 to a ratio of two to one.
According to the Commission, aging would already start affecting most EU economies in the coming decade.
Although, by 2060, the EU population was expected to be roughly the same size as today, it would be much older. Productivity would be the main factor in economic growth, with the potential level falling sharply within the EU, with major differences between countries.
At the same time, the cost of transfers and services for elderly would increase significantly for member states' public purses. Some member states would be worse affected.
Malta was put in the most affected category. Eight others (The Netherlands, Finland, the Czech Republic, Lithuania, Slovakia, the UK, Germany and Hungary) would see a rise of between four and seven per cent and the remaining 10 (Bulgaria, Sweden, Portugal, Austria, France, Denmark, Italy, Latvia, Estonia and Poland) would see increases of four per cent or less.
The EU Commissioner for Economic and Monetary Affairs, Joaquin Almunia said the increase in unemployment and the deterioration of public finances made it all the more important to renew the EU's commitment to address the demographic challenge.
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Joseph W. Galea
May 3rd 2009, 08:28
I think that in 50 years time the whole world will be aging, don't you think so?
I mean, after all, 50 years is a half a century.
There were times when human longevity was less than that. And in some countries, it still is.
John Matthews
May 2nd 2009, 22:15
Hi joe. (MrJoseph Short Pace). Unfortunately pensions do not go very far, however, It would be cheaper for me to live in Malta than in the UK. For example my council tax is £2063 per annum. My gas and electricity bills are £80 per month. My TV Licence is £11.95 per month. On top of this there are water rates, car tax, car insurance etc etc. the list goes on. In Malta the utilities do not cost as much. The Maltese people can enjoy a warm climate (cutting down on the heating bills). In the UK we have to have carpets all over the house to keep the warmth in. In Malta the houses have tiled floors, with the occasional rug in the winter. For a person on an English pension it would be cheaper to live in Malta than in the UK. I cannot comment on Maltese pensions as I haven't a clue. As well as all the costs I have mentioned, the prices of property in Malta are a lot cheaper than where I live in the UK. A lot of people use the average cost in UK not the cost in certain areas. Good luck Joe
M. Mercieca
May 2nd 2009, 20:44
This is the case all over Europe not only in Malta.
The average birth rate in the EU is down to about 1.5 children per woman, raising fears that an ageing European population will not be able to finance pensions systems. This population’s deficit must be filled. This mean more man power is needed. This means my FOREIGN work force is NEEDED. This very simple fact Immigrants understand it. European citizens (politicians not included) don’t.
By the way Colonel Gaddafi Knows this fact too.
Joseph Short Pace (es-pat)
May 2nd 2009, 20:14
Ref: John Mathews yes John but don't forget the pensioners in the UK knowing from my own experience as i too am a pensioner, are in a better position then the Maltese pensioners, they receive more in benefits,and their health care is second to none, and ofcourse people retireing on the islands are spending their UK or any other pension that are entitled to over the years, but this year with a Big Difference - Devaluation of the sterling situation some ex-pats are not making ends meet and resolving by returning back to the UK, i am retired in Malta and by Joe just watching the ads. on Skynews , half price for this and 1/3 off that we just haven't got those sort of bargains like you chaps in the UK, most including myself are preparing to return hopefully our pensions will stretches that much more-* then in Malta,cause lets face it , if it weren't for the sun,sea and freedom we wouldn't be here in the first place ,helas the pound is sinking and unfortunitly leaves most of us on British pensions no choice which is a right down shame really as we come to love this place.
John Matthews
May 2nd 2009, 17:04
I have had many jobs in my lifetime, ambulanceman for 17 years, undertaker 5 years, to name but a few. in the UK the death rate per capita is the Poole cum Bournemouth area. Why. Because people retire to these areas. Likewise people retire to Malta, ex-pats plus people returning to Malta to retire , for example UK, Canada and Australia. Remember the recruiting days from the late 60's and early 70's from MARS. These people have now retired and are returning home. This is an undeniable fact. The only thing I can say in favour is, that they spend their pension money in Malta. Who knows, maybe I can retire to Malta on my wife's behalf who is a Maltese citizen. Having said this, I am already retired in UK. INEVITABLE I'm afraid
Vincent Galea
May 2nd 2009, 15:34
It's unfortunate the fact that society turns it's back on the tremendous stock of hard earned experience and wisdom which older people possess.They have been through various trials and tribulations, hence learned a way of coping with many of life's toughest problems and can be an invaluable resource of sage counsel to younger people lacking this experience. This store of knowledge is acquired only over the course of many years.
But instead of utilizing this valuable asset to the full, quality is callously cast aside for the doubtful advantage of youth.
How is a person's worth to be measured?
If his physical strenght has waned while his life experience, sagacity and insight have grown............... is this an improvement or a decline ?
James Xerri
May 2nd 2009, 14:22
That show us in fact that the majority of the younger generations are leaving the islands for a better future for them and their families now that the doors are widly opened for all eu members whit the F.O.M(freedom of movement) both for residency and jobs overseas.We know that the education system on these islands is second to none, in other words we got one* of the best educational system in line with others countries, our children are well behaved and have a good upbringing and i dare say a hard working nation,but unfortunitly i know and i am including myself, of many with diplomas and first class degree in medicines etc., but just isn't enough suitable jobs or employment for these people to be able to put their knowledge into a good use, thus however moveing to a better and a greener pastures is the only option, i feel very sad about all this because rightly said Malta is worst hit by aging population and this is one main reason, all the young once are leaveing home and their families. Its a great pity realy from the immediate families point of view.
Joe Tabone-Adami
May 2nd 2009, 11:15
Everything has a price - man alone has value. Even in old age. I'm afraid this smells of 1984 - get rid of the 'unproductive' elements and the rest will live happily in greater economic stability.
Jeffrey Tabone
May 2nd 2009, 09:23
i've been saying all along that old people will be our country's downfall!! LOL oops i forgot even i am getting older!