The growing importance of pension reform : how does this apply to Malta and why is it becoming increasingly important to reform the system in Malta?

Abstract

The aim of this dissertation was to study Malta's pension system, and its sustainability and adequacy in the long-term. The current pension system was studied, as well as a number of recommendations that have been put forward to reform this existing system. This allowed for an analysis to be carried out on how these proposed reforms would affect the income of Maltese pensioners, the GDP of Malta, as well as the Government deficit. In order to carry out this study, research was carried out about the pension systems of other countries and reforms that have taken place. This was followed by a study of Malta's current pension system, its shortcomings, and the proposed reforms that have been made to the Government in a report. From this, projections of the effects that these reforms would have over a number of years were carried out. Furthermore, an analysis was also made of the opinions of certain entities on the reforms being proposed, and an in depth interview was also carried out, which led to a set of recommendations being made in addition to those found in the Report. The conclusion of this study was in fact confirmation that the Maltese pension system will become increasingly unsustainable and inadequate as time passes if it is not reformed. It was also found that there is a limit as to how much the current pension system can be improved, and therefore there is little other choice but to implement new pension framework. This is an important research topic as it is a problem that many countries including Malta are currently facing, and that must be tackled in the near future. The objective of my dissertation is to show that Malta requires pension reform and also the importance of coming up with a good plan, implementing it properly within the correct time frame.