The Nationalist Party has called on the government to introduce the National Minimum Guaranteed Pension at a faster pace, to address the 34 per cent of the population who are at risk of poverty.
Social Solidarity Shadow Minister Paula Mifsud Bonnici said that according to government proposals, the guaranteed pension – which is to be introduced next year for over-75s as part of a staggered programme – was “discriminatory” because would still leave many people below that age at risk of poverty.
She said that according to a recent parliamentary question, there are 22,200 people on a pension of less than €500 a month.
Just concentrating on those who have reached the age of 76 would not address this situation, she said.
Together with PN spokesman for the elderly Robert Cutajar, she also insisted that the proposed monthly €30 increase – from €590 to €620 – was not enough for pensioners to enjoy a decent standard of living.
The PN called a press conference yesterday to present its reaction to the recommendations of the Pensions Strategy Group on the pension reform.
PN deputy leader Mario de Marco said the PN had submitted a number of proposals on pension reform which addressed not only the sustainability but also the adequacy of pensions.
He, however, questioned how the working group had based its recommendations on predictions that Malta’s population would increase to 470,000 by 2060 when there were contrasting predictions that the population would actually drop to 370,000. This, he said, raises questions on the sustainability of pensions.
Dr de Marco said Malta needed a system that made pensions sustainable because the population was ageing and the working population was decreasing. He said that although the government had introduced schemes and incentives on the third pillar pensions, the take-up was not as expected.
Regarding the controversial introduction of the second pillar pensions, the Nationalist Party does not agree with the working group’s recommendation to completely exclude its introduction.
“We are not saying let’s introduce it and make it mandatory. Neither are we saying let’s exclude its introduction completely. What we are saying is that the time is right to start studying the introduction or the lack of,” Dr de Marco said.
Dr de Marco said that one of the group’s proposals meant that those born after 1965 would only receive a pension if they had paid contributions for 41 years.
In the case of people who started work at a later age, this would effectively mean that their retirement age was being raised, he said.