No need for controversy on pension age

Why on earth should we face yet another unnecessary political division on the retirement age? As if we don’t already have enough controversies!

Whether the government has or has not really given the EU a commitment to link the retirement age to life expectancy is hardly relevant at this stage after only five years from increasing it considerably for the medium term. Sometime, for sure, it will inevitably reassume relevance. This “sometime” fits in nicely with the way the opposition has described it: “Only when economic conditions allow.” Which government would dare do otherwise, EU urged or not?

Let the controversy then be postponed for at least another decade.

To me, the two major political parties appear to differ only in their general overall approach to economic issues. Today’s government understandably weighs pension reform consequences chiefly from a fiscal angle, whereas the opposition from an economic growth one. Both parties have yet to indicate their awareness that extending the retirement age alone necessitates the creation of further job opportunities simply to retain the “status quo” with unemployment, let alone increase the participation of a higher percentage of the population in the creation of economic wealth.

In Malta’s current scenario, where only 147,334 are gainfully employed (a mere 35 per cent of the population) and of whom 40,591 (27.5 per cent) are in the public sector, it must be wise to accept the validity of both viewpoints and, as in wont in economic management, strike a fair balance rather than build a fence.