Not a moment too soon, the pensions strategy group has come out with re-commendations for a reform of the pensions system, a matter that has been on the country’s agenda for years. Their report was expected to be published at least nine months ago. However, at least the group has now produced a comprehensive setof recommendations.

The inadequacy of the State pension is a recurring source of discontent. Particularly galling is the system’s in-built discriminatory treatment. When not even the capped two-thirds pension is deemed enough for pensioners to live on in this day and age, it is not hard to imagine the difficulties pensioners with a lower pension face to make ends meet.

This is why a recommendation in the strategy group’s report to introduce the guaranteed national minimum pension mechanism for allpensioners, targeting the most vulnerable first, is most welcome.

The long-running issue over service pensions and, also, the fact that the computation of pension is worked out differently for ordinary people and for MPs, whose pensions are uncapped, are also deep sources of irritation. The former Nationalist administration had once promised to look into this privileged treatment, but clearly MPs do not think it is urgent for them to rectify the unjust anomaly.

A new judge has brought up what she called the “pathetic and humiliating” pension members of the judiciary get on their retirement. The judge may rest assured that most retired taxpayers feel exactly the same. Since, like retiring judges, most people had to make great sacrifices of one sort or another in their working life, they rightfully expect that if the pension increases, as it should – sooner rather than later – this should be made applicable to all in equal measure.

Only a few days ago, the Pensioners’ Alliance’s president, Carmel Mallia, remarked that the ceiling imposed on the two-thirds pension had been frozen for more than two decades and it was only in 2004 that it started to be topped up by the cost-of-living wage adjustment. Clearly, the time is well overdue for the government to address this matter.

Given that the government has ruled out the introduction of the second pillar pension, future retirees would have to rely, as many do today, on income earned from savings made during their working life to supplement their pension.

One difficulty, however, is that investment yields are not what they used to be but at least those who are careful enough to think ahead and save for their retirement are in a betterposition than those who fail to do so. Perhaps the incentive offered under the third pillar pension scheme can be made more attractive.

The strategy group is encouraging people to stay on working after their retirement age, if they are willing and able to do so, so that they will be able to get a better pension deal when they formally retire. It says a person who defers his or her retirement pension beyond 65 will see the pension increase annually in a compound manner for every full year of deferment.

In the case of those in employment ­– as distinct from the self-employed – it all depends on whether employers are prepared to keep older workers on their payroll. Not that they should not, but they may feel they can get a greater output from younger workers.

There is much in the report to consider and act upon. However, the need to improve the pensioners’ lot is urgent.

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