What makes for an ‘adequate’ pension?

The editorial of August 14 called for the pension reform to move on. In the same issue, the Meusac news supplement quoted David Spiteri Gingell as saying: “According to the World Bank, an adequate pension is that of 40 per cent of the average salary within a country.”

The Economic Survey of October 2009 gives the weighted weekly wage for all firms at September 2009 as €264.38.

The yearly amount would be €5,605 (40 per cent of €14,012) and is less than the risk-of-poverty figure of €5,728yearly.

Are we starting this reform from the concept that the basic pension would be less than the risk-of-poverty rate?

I have to point out that the World Bank has not been a very reliable source for pension reform in Europe.

It is common knowledge that the reforms carried out in the ex-Soviet countries had little success and in the majority are on the verge of bankruptcy. The World Bank had to make a public apology to these countries for the inappropriate advice it had previously given.

It is relevant to point out that five years ago the government did not implement many of the recommendations given by the World Bank. I hope that it will study in detail the recommendations given and implement what is actually relevant to Malta.