Pensions expert David Spiteri Gingell is proposing a significant extension to Malta's current retirement framework, arguing that workers should be rewarded for staying in employment beyond the age of 65.

In an article published in this newspaper today, he calls for the voluntary pension deferral scheme to be widened to cover ages 66 to 70, with a defined annual uplift for each additional year worked.

Spiteri Gingell argues that the incentive should be set above the actuarially neutral rate, insisting that evidence shows generosity drives participation. He points to the existing 61-65 scheme, which has already led to fewer people opting for early retirement.

The relationship is clear - the more attractive the incentive, the stronger the behavioural response, he writes, suggesting a model that could see pensions increase substantially for those who continue working.

The proposal forms part of a broader argument on how Malta can respond to mounting demographic pressures.

Read the article here