The social security pension in Malta : what future?

Abstract

The aim of this paper is not to offer any magic solution to the problem of financing the ever increasing load of the Social Security pension in Malta, but only to highlight some important points so that action may be taken to correct popular attitudes towards such issue, namely to help guarantee that whoever through his work or his investments contributes towards the generation of wealth, will be able to maintain and improve his standard of living even at the age of retirement. "In the most advanced and richest countries a crisis of the Social Security system has developed, independently, progressively and simultaneously over the last two decades." One of the causes of this crisis may be that these countries were inspired by the legislation of their neighbour states. Malta is no exception and although it is still developing, it is already moving from industrialisation, towards the tertiary economic activity. Perhaps in this sphere, Malta has an advantage, since from time immemorial the Islands adapted themselves and their workforce towards the services industry. The topic of the Social Security Pension is a very hot issue since, it is the favourite argument of all politicians. All political parties use the benefits and allowances issued by the Department of Social Security as a form of publicity. Probably, the situation we have now is due to the fact, that politicians are short-sighted since they never look beyond their five year term in office and therefore vote for any legislation that will make them look generous in the eyes of the electorate. [...]