The present pension structure is in dire need of reform if the sustainability of pensions within 10 to 15 years is to be safeguarded, the Forum of Maltese Unions said.

However, pensioners were finding it extremely hard to make ends meet in view of the ever increasing cost of living, particularly the exuberant water and electricity rates and fuel prices, it said.

The Forum noted that although unemployment was down and the number of gainfully occupied increased each year, Malta still had a very low female labour participation and there is much room for improvement.

Family friendly measures, it said, had to be strengthened.

A good incentive to assist families in balancing careers and family constraints was the EU proposal to increase parental leave, which Malta voted against.

The Forum noted that the 40 years contributory period was discriminatory against women, as these were, at times, constrained to abandon their work for a period of time on unpaid leave to take on a caring role.

"While it is positive that mothers are given credit for each child they have, the same should be allotted to those who participated in non-compulsory education, sixth-form, undergraduate university as well as post-graduate studies.

"This category should also be given credit by reducing the minimum number of NI contributions.

"Similarly, years spent as an apprentice where NI was not paid by the employer should also qualify for credits."

Forum was also in favour of early retirement in certain cases such as professions which required mental and physical strength throughout. Workers should also be given the opportunity for early retirement if they were willing to give up part of their pension.

Forum said that proposals to increase further the retirement age were unacceptable and every effort had to be made to continue to strengthen the first pillar pension.

The second pillar should not be mandatory at this stage and every effort had to be made to minimise risks for the third.