Please use this identifier to cite or link to this item: https://www.um.edu.mt/library/oar/handle/123456789/5556
Title: Pension schemes in Malta : a study of the need for reform
Authors: Vella, Valerio
Keywords: Pensions -- Government policy
Pension trusts -- Law and legislation
Issue Date: 2015
Abstract: Pension Scheme Reforms are of utmost importance for our country and certainly such reforms are a must in the near future. Currently in Malta we only have National Insurance were current employees pay for today’s pensioners. This system is mainly known as the Pay As You Go System. There are ongoing consultations and studies regarding voluntary third pillar schemes and tax incentives for employees who opt to put aside and invest until retirement age. (Budget Document 2014) This research includes an analysis and proposed recommendations for reforms in the pensions sector that can be feasible for the Maltese working population. The standard three-pillar pension system, used in most western countries will be discussed in the dissertation. Presently, Malta adopts the first pillar pension scheme and EU is putting pressure on Malta to implement reforms regarding pension schemes. Malta remains amongst one of the few EU countries not to have a proper pension scheme. A fully blown reform has been put on hold for a number of years, predominantly as the introduction of occupational and voluntary pension schemes could negatively impact the purchasing power of workers and various aspects of our small and vulnerable economy. For instance, the average take home pay in our country is quite low when compared to developed countries like Germany, France, Italy, United Kingdom, Central Europe and the Scandinavian countries. (Eurostat 2014- Average wages/salaries in the EU). The main objective of pension schemes is to provide a lump sum and/or a stream of income at retirement. Whereas State Pensions offer retirees a minimum income to meet day-to-day purchases and necessities, the amount is barely adequate to retain the same standard of living pre-retirement. It is private pension schemes that offer a solution and could alleviate retirees’ financial strain through the provision of a supplementary income. In addition, financial institutions offering private pension products usually bundle life assurance and investment. Whilst the policy owner would be saving up, there would be peace of mind through life cover that could alleviate the beneficiaries’/heirs’ inheritance tax dues.
Description: B.COM.(HONS)INSURANCE
URI: https://www.um.edu.mt/library/oar//handle/123456789/5556
Appears in Collections:Dissertations - FacEma - 2015
Dissertations - FacEMAIns - 2015

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