The government has launched a draft national strategy for retirement income and financial literacy, in an attempt to emphasise the importance of saving and investing for one’s retirement, as well as the best ways to do so.

The strategy (pdf links below) was first recommended in June 2015 by the Pensions Strategy Group and, after consultation with the relevant stakeholders which refined the proposals, it is now being opened for eight weeks of public consultation.

The aim is to help people understand what pension they will have in retirement and what additional income they would require to maintain their desired lifestyle. It will also use educational efforts – for children to adults – to explain the options available, as well as the associated risks and rights.

“Are persons aware of the income they will receive from their social security pension? Will the pension income they will receive be enough for their retirement plans and the quality of life sought?” the chairman of the group, Mark Musu explained at the launch today.

“Understanding the importance of planning for retirement alone, however, is not enough. A person, also, has to be financially literate so that they make sure that the returns from the savings and / or investments accrued across different life-events and for retirement, result in the financial rewards sought.”

A national commission will be set up to coordinate the strategy once it is put into action.

Feedback from the consultation will be correlated and passed on to the Ministry for Family and Social Solidarity, the Ministry for Finance, and the Ministry for Education and Employment, before being passed on to Cabinet for action.

Feedback should be sent to: financialeducation.mfss@gov.mt by March 23.

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