The labour market situation of older adults : and transition to retirement

Abstract

From an overview of published research and statistical data on the labour market situation that was carried out, it emerges that participation of older workers in Malta is relatively low when compared to that of the European Union (EU). This situation is considered to be one of the main factors responsible for Malta’s low activity ratio that has prompted the European Commission to recommend an increase in employment rates for older workers by means of the development and implementation of a comprehensive active ageing strategy. A gradual increase in statutory retirement age kicked off on 1 January 2013 when the age of retirement went up from 61 years for males and 60 years for females to 62 years for both genders. This process will continue over a period of thirteen years by which time the age of retirement would reach 65 years for those born on or after 1 January 1962. The intensification in statutory retirement age is accompanied by a corresponding lengthening of the contribution period and the right to qualify for a pension (Social Security (Amendment) (No. 2) Act, 2006). The cohort sample in this study consisted predominantly of Public Officers born during the calendar year 1953, who reached the statutory age of retirement of 62 years during the calendar year 2015. There could have been some participants who were born before 1953 and were still in Public Service employment. The reason could be that they occupied one of the selected positions to which the general termination of employment clause does not apply. Alternatively, they could have been re-engaged in the Public Service following retirement or given a position of trust with a Government ministry or parliamentary secretariat. The study seeks to investigate the emotional, psychological and financial preparedness of Maltese Public Officers for retirement. Furthermore, it examines the labour market situation for older adults with a particular focus on Malta. The findings point out to the need to facilitate the transition to retirement, making the experience less stressful and traumatic. An adequate pre-retirement supportive course which includes counselling training sessions as an integral part of it can make the transition smoother. Furthermore, there should be an iii elimination of the existent discriminatory policies that preclude older persons from remaining active in the labour market. Practical measures should be implemented to accommodate older workers who desire to work for a longer number of years, which would encourage active ageing. An important initial step forward in this respect is the abolition of the existent compulsory age of retirement.