A political discussion on pensions exposed the reality and not the realism of the situation of present day pensioners. What is the difference? One is just a likeness that underlies appearance; the other is the truth of life.
Realism for pensioners is the fear of facing precarious situations- Joe Bugeja
Resilient pensioners do not want to listen to theoretical plans for pensioners, being conscious that the fulfilment of politicians’ promises will be ‘interred with their bones’.
What is realism for pensioners? It is the fear of facing precarious situations: death, poverty, loss of family independence and the eroding power of inflation and the cost of living.
Retired workers had paid for their pensions; deductions of one 12th of their monthly salaries. Present-day octogenarians had been taxed for at least 48 years.
If their contributions were wisely invested at compound interest, the accumulated sum would have made good for most of the pensioners’ retirement. Besides, only those who outlast the age of 72 get a full pension, governments gain on those who miss this hurdle.
Pensioners’ purchasing power illustrates their hardships when stubbornness characterises governments. The tangible realism reveals the present-day situation of pensioners. X’s daily records of income and expenditure are authentic mathematical calculations. X receives a Treasury pension (€409) and a social security pension (€552), totalling €961 every month.
He led an exemplary life: as a good citizen he was the bright light of his family. Unlike gamblers, alcoholics and drug addicts, he never had any brush with the law, no charges from traffic wardens, never enjoyed any hotel accommodation in prison and never burdened the health authorities with serious ailments.
He raised a family of four including his wife. Currently, his pension is spent only on two people (and the cat). Expenditure centres on bare necessities and no luxuries.
He purchases edibles from grocers, greengrocers, bakers, butchers and fishmongers, spending on average €400 monthly.
Being house owners, they pay only ground rent, house and garden maintenance, replacements and repairs.
Naturally, they need the help of a maid (four hours every week) and a handyman. These monthly necessities average €500.
Other expensive items are: car fuel, insurance, licence and service (€160) and gas, water and electricity (€120), amounting to a conservative estimate of €280.
Doctors and chemists also claim a share of his income. The money charges of infrequent visits go to his local doctor, to specialists in dentistry, urology and ophthalmology.
Their expensive prescriptions help him control old-age ailments, prostrate functions, high blood pressure, stomach acidity and asthma. His average monthly expenditure amounts to €145.
Does he need to say more to include the purchase of an occasional book, the daily newspaper, stationery, stamps and reams of paper and ink for his computer and printer?
Naturally, he owns a mobilephone and a Telecare phone for which he pays a monthly rental.
He does not include the fees for the common lift. Nor does he include any form of entertainment, which both husband and wife are entitled to, including a week’s holiday abroad or a humble excursion to the local restaurants for a pizza or pasta or for just a drink. Neither does he mention the expenses on Christmas, birthday and wedding presents. He does not include the membership fees of clubs that enhance his well-being. These are voluntary expenses but essential in old age.
Worst of all, he is not addicted to gambling: he never plays the football pools, nor places bets on horses. The Super Five or the weekly lotto stimulates no temptations. Yet, like others, he must pay VAT contributions and other taxes.
But what are his means of survival if his expenditure exceeds his pensionable income? Fall on the generosity of their children? Nibble at their savings? Fake hospitalisation? Or rent a bed in an old people’s home? It is cheaper than staying at home for a ‘stipend’ of €300. The parsimonious benevolence of parliamentarians is no reflection on their four-year pensions!
This is the realism which governments have ignored for years. This is the true situation of Malta’s pensioners. Truth hurts. I did not mean to. I only want pensioners to stand out and be noted.