In 2013 the pension expenditure in Malta was lower than the EU average, or below 9.6% of GDP, but by 2060 it is expected to increase up to 12.8%, one of the highest figures in Europe. With this background, the European Commission expressed itself favorably to sustainable long-term retirement plan, drawn up by the Maltese government with the first measures proposed in the budget plan in 2016.

Already last year, the EU Commission  invited Malta to continue its reform of pensions in the course, with an increase in the retirement age and by linking it to changes in life expectancy, for greater long-term sustainability of the system.

Among the measures taken by the government is extending the number of years of contribution – 40 to 41 – are necessary to get the full pension. Furthermore, the reform provides for two measures: the increase of the minimum national pension up to 60% of median income (by 2020), and social security coverage for women who don’t accumulate sufficient contributions due to career breaks for pregnancy.

(ITALPRESS/MNA).

Source: medNews