As things stand now, there are people who qualify for a pension before reaching retirement age. Some prefer to continue working; others opt to leave. But those who do, and therefore are entitled to start receiving a pension, cannot work. Not part-time, not full-time.

In a country where there is nearly full employment, and where employers are finding it difficult to recruit the workers they need or replace the ones who leave, this situation should be revised.

The budget to be presented for 2023 is the right time for this situation to be rectified.

Two main employer bodies have addressed this particular issue in their budget proposals. They have presented solutions, knowing their members’ difficulties to recruit the right people.

The Malta Employers Association is suggesting that people who reach the age of 61, and “who would have paid the NI contributions, (should be given) half of the pension they would be entitled to until they reach retirement age, if they continue working.”

The Chamber of Commerce came up with a different proposal. “Those workers who qualify for a pension before retirement age and choose to take it should be given the possibility to work on a part-time basis. At present they cannot have any form of employment before their official retirement age is reached. It is also preventing younger pensioners from being able to supplement their pension with legitimate employment income.”

These are just two proposals that should be taken into consideration by the government. There could also be other ways by which this situation could be addressed. One of them is to allow these people to continue to be fully-employed, not just on a part-time basis. Another is that they could start receiving their full pension even though they remain fully-employed.

What is important is that the experience and knowledge of these people is not lost. People over 60 who are in good health and would like to continue working should not be deprived of this possibuility.

When this system was introduced, it was said that people who reach retirement age should not be eligible for a pension if they choose to continue working, simply because they would be taking up jobs which would otherwise go to younger generations. It was probably the right thing to do at the time.

But the circumstances have changed. These days, employers are losing their most experienced employees and are not finding replacements.

People who have completed their NI contributions but have not reached their retirement age are choosing to call it a day, leaving a void behind them. Many would opt to continue working and supplement their income with a pension, but this is at present not possible.  

Allowing these experienced employees who are entitled to a pension without having reached retirement age to continue working while still getting a pension is a win-win solution – for both the employers and the employees. And for the government too.