During his weekly video blog, the Minister for Finance Prof. Edward Scicluna discusses the issue of sustainable pensions and how these can be achieved and safeguarded in the long-term so as to assure peace of mind now and in the future.

Prof. Scicluna explains that this can be done in various ways according to various models and approaches, such as on the basis of economic growth, on the basis of the number of participants in the labour force, AND on the basis of the number of retirees each year.
On the basis of these factors, one can calculate whether the Government can sustainably finance a given pension system, he notes.

Prof. Scicluna acknowledges that Malta’s population is an aging one, which could lead to a situation where the labour force would not be able to sustain a disproportionately large pension burden which stems from an aging population.

Prof. Scicluna explains that the Ministry for Finance is, in cooperation with the Ministry for Family and Social Solidarity, analyzing the issue with the intention to identify the best applicable solutions to address the emerging issue.

Prof. Scicluna also notes that at the same time in view of Malta’s encouraging economic growth, which ranks among the EU’s top-performers, as well as the increased labour participation (especially among women) are expected to positively affect the sustainability of pensions.

– 11th Sept 2014