Long-term stability in the pension system can only be achieved through sustained economic growth and good fiscal governance, said Finance minister Edward Scicluna.

The Minister for Finance was speaking as the leading panelist during a Business Breakfast. Themed on pensions, the business breakfast discussed various issues and options with regard to pension reform.

During his intervention, Prof. Scicluna underlined that the approach towards pension reform needed to be a continuous updated effort, instead of sporadic and intermitted approaches. One should not attempt to address all issues at one go.

“Pension reform is a discussion we should have often, and regularly, so that the system can be improved over time to meet a constantly-changing economic landscape. It is extremely positive that we are having this debate today, so that we can keep moving forward and ensuring that pensions remain viable and sustainable,” said Prof. Scicluna.

Prof. Scicluna also underlined that the only way to achieve a sustainable and adequate pension is through sustained economic growth and responsible and effective public governance.

“A government must ensure that every initiative that is undertaken results in tangible economic growth. If this is ensured, then one can guarantee an adequate and sustainable pension. The NSO has recently published figures that show that the Maltese economy is achieving economic growth rates and labour participation rates which the 2006 pensions model only thought were achievable in 2025. Rates for immigration need also updating.”

Prof. Scicluna also emphasised the importance of an ‘outside-the-box’ approach which does not rigidly perceive the pension system as a set of ‘pillars’, but a more fluid approach that looks instead at those areas and demographics that need to be addressed. Amongst these are the national debt, and the introduction of annuity schemes for retired persons locked into illiquid positions due to substantial property ownership.

Minister Scicluna also called for all stakeholders to avoid adopting confrontational or alarmist stances on the issue of pensions, and urged for constructive approaches towards consensus across the board by all involved.