A lifeline for pensioners

Our society seems to have adapted too much to living with uncertain prospects for thousands of people who face very difficult times when they retire from active work. This is not helped by some politicians' attitude not to discuss the pensions time-bomb which is not only ticking but also threatening to destroy the quality of life of so many aging people.

A recent study conducted by the insurance company Aviva confirms that half of Britons retire on less than € 9,000 a year. This is about the same level of the average national pension paid to Maltese pensioners.

This survey conducted among 1,000 adults who retired during the last two years also revealed that 65 per cent of over-50s are worried that their savings will not see them through retirement. Ross Altmann, a pensions expert and governor at the London School of Economics, said: "It is essential that we wake up to what is going on - the economic crisis had decimated people's pensions and their investments have not worked out."

Pension reforms are difficult to implement because besides managing the financials, one needs to also manage people's expectations. But the present reality is so bleak that we owe it to our pensioners to take action to save them from undignified living conditions in a critical stage in their lives.

Most people in their 30s and 40s do not plan much for their retirement. This landmark seems too distant in the future to make someone in middle life really apprehensive on what is likely to happen if one's savings pot on retirement is inadequate. The fact that even today there is ample evidence that many pensioners are having a hard time seems to pass unnoticed, even by those whose duty it is to offer solutions to this problem.

There are various measures that can ease the problem. Maltese workers on average leave the labour force at the age of 58.5, the lowest age in the EU 27 where the average exit age is 61.2 years. In the USA the average retirement age is 62.7 years.

I do not believe that the Maltese enjoy less good health than the average European. So, what is probably happening is that we are more lenient in boarding out people on health reasons. Genuinely ill people should be eased out of work in a dignified way; but those who can still work should not be given this luxury.

The government must also make it easier for those in their 50s and early 60s who are unemployed to find work. Those in this age bracket who are in employment and are still healthy should be encouraged to continue working. We rarely speak about the age bias that exists among our employers. But ageism is certainly a stumbling block preventing aging people from helping themselves by finding a job.

Most of these people would be willing to trade down their employment conditions. They may be prepared to work shorter hours, get paid a smaller wage, and take on less demanding responsibilities, as long as they have regular employment that relives some of their financial pressures.

Ironically, the only organisations that seem to want to debate the pensions time-bomb are banks and insurance companies. They do not do this because they are troubled by a sensitive social conscience, but because they see an opportunity to fill their coffers with even more profits by selling retirement-linked financial products.

It is about time that our politicians emulate our bankers by offering solutions for easing pensioners' hardships, even if they should do this not for monetary gain but because it is fair and just to do so. Abuse of social services is a reality that needs to be faced with strong political determination. But we need to admit that today many pensioners are falling through the holes of our social safety net.

Relying on the help of relatives is one way of mitigating the worst effects of this crisis. But the state also needs to ensure that those in, or nearing, retirement who can and want to help themselves can do so without bureaucratic obstacles. Those who are incapable of helping themselves need to be given a lifeline by the rest of society.

This is what social intergenerational solidarity is all about.

jcassarwhite@yahoo.com