The local pension scenario - comparing Malta to other EU Countries

Abstract

The principal aim of this dissertation is to give a detailed explanation of the current pension system in Malta and to view the Maltese pension system against the backdrop of pension systems in other EU countries. By researching fiscal sustainability and the adequacy of the pension system, the study shows how the system will need to adapt to an ever changing economy and lifestyle in the future. The effect of the financial crisis in 2008 on the pension system is also tackled in this dissertation. Pension reform has been discussed for over the past two decades. In 2006 a new Act was published, 'Social Security Act', which effectively increased the retirement age to 65 and introduced other changes to the pension system in Malta. The final section of the dissertation deals with the conclusions reached - that Malta should not adopt the one size fits all approach laid out by the European Union. Instead the Maltese Government should seek ways of how to propose reforms to the current pension systems. These ways should seek to reduce the level of youth unemployment, encourage females to enter the workforce, make the labour force more flexible and encourage the Government to lower its level of spending thereby achieving a lower level of deficit.