The 79 ‘lefties’ focused their Budget proposals on the elderly. Photo: Matthew MirabelliThe 79 ‘lefties’ focused their Budget proposals on the elderly. Photo: Matthew Mirabelli

Young people must be helped to own their home if the government wants them to monetise their property in old age, a group of left-wingers has said.

A pension reform document earlier this summer suggested the government introduce equity release schemes for pensioners who were cash poor but property rich.

Putting forward proposals they would like to see implemented in the Budget, the group of 79 left-leaning individuals said young people should be able to acquire their home in a reasonable time and at affordable prices.

“The government should create some institution that helps young couples build such assets when they are still in their prime,” the group said, calling for equity-release schemes to be properly regulated. Youths in precarious jobs and on fixed work contracts were not in a position to buy a house and would never have an asset to monetise later on in life, they added.

The group, which includes intellectuals, writers, priests, social activists and self-employed individuals, focused their Budget proposals on the elderly, “a category highly exposed to the risk of poverty”. Expressing the widely felt concern that retirement income did not permit pensioners to lead a decent existence, the group suggested that the minimum pension be “immediately raised above the poverty line”. The reform document suggested a gradual increase in the minimum pension over 17 years.

The group said it was worried about remarks that the State pension could in the future not be sufficient to lead a decent existence. “This is dangerous and ought to be resisted... not everyone can afford to invest in a private pension [to supplement the State income].”

Some institution should be created to help young couples build such assets while still in their prime

While agreeing with the concept of promoting active ageing, the group noted this did not apply to everyone since, for some, old age was equivalent to lack of mobility, sickness and more dependency. This necessitated social and psychological help and such services had to be decentralised, the group said.

They also called for an increase in the number of State retirement homes and encouraged the government to buy additional beds from the private sector as an interim measure.

“There should also be night shelters in every locality to cater for old people who feel lonely at night but can spend the rest of the day at their home in the community,” the group said.

The proposals included a call for more green spaces within the locality to serve as respite areas for the elderly.

The group made headlines in November when members wrote an open letter to the Prime Minister expressing concern at what they regarded as the Labour government’s departure from its socialist roots.

kurt.sansone@timesofmalta.com

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