A recent study revealed that only 35% of the Maltese adult population believes that the state pension system needs to be reformed. While a further 20% of the interviewees, who are representative of the Maltese adult population stated that their feelings about pension reforms are neutral, 31.7% expressed doubts on the need for a reform. 13.3% did not commit themselves to answer in any way.
The survey, published by the Sunday Times shows how those who support the proposed reforms more fervently are persons aged 65 or more, where 55.6% of those questioned in this age-group agreed that a reform is due. In turn, males seem to favour the proposed reforms more than women, with 38.1% of interviewed males claiming they “agree a lot” with possibility of a pensions reform as opposed to 32% of females who gave the same answer.
When questioned about whether the government should raise the retirement age from 60 to 65, 22% disagreed very forcefully and while 1% fully agreed. In turn, 56.7% simply disagreed with the idea while 7.3% said that they agreed.
As mere 0.3% of the interviewees think that raising the sealing of pensions will be allow pensioners to financially satisfy their daily needs. The proposal explains how the maximum amount of pension payable will be raised from the current level of Lm4,500 to Lm6,000, which will be worked out on the basis of increase in the cost of living. 86.4% in turn, expressed serous doubts as to whether it will be enough. The remaining 13.3% believe that the proposed pension will be sufficient.
Privileged pensions came under attack by 50.3% of the population, where many cited them as unfair. Only 10% agreed that Ministers, Members of Parliament and Presidents of the Republic should enjoy higher sums of pension than average citizens. 39.7% of those questioned said they were indifferent to the argument. It is interesting to note that in the proposed pension reforms, no reform in the regard of privileged pensions was announced although reforms to abolish these privileges have been spoken of from time to time.
Opting out of state pensions and investing in a private pension scheme seems to be highly favoured among Maltese citizens where as many as 65.7% agree that this option should be possible. 10% did not commit to answer, while 24.3% do not believe that putting such a proposal into existence would be beneficial.
The majority of Maltese also wish to retain the current situation of working past the age of 65 and receiving a full wage or salary, along with a full pension exempt from paying any social security contributions. Just 4.7% expressed strong disagreement to the current situation which is expected to be retained, while and another 32.7% expressed disagreement with the current state of affairs. On the other hand only 2% expressed themselves forcefully in favour of the exemption and another 40% stated that they agree with this position. 20.7%, in turn, expressed a neutral position.
See also:
Government's final proposals on pensions reform published
By Roseanne Sammut
Mar 1, 2006, 16:29 CET
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