Background:
The Pension Strategy Group (PSG) Strategic has conducted a Review on the Adequacy, Sustainability, and Solidarity of Malta’s Pension System as part of a statutory five-year cycle mandated under Article 64B of the Social Security Act, which requires the Minister responsible for social security to table a review of Malta’s pension system to ensure that it continues to uphold the core principles of adequacy, sustainability and social solidarity.
Since the previous strategic review, several reforms have strengthened pension adequacy with more recent reforms delivering outcomes that are stronger than previously anticipated.
Malta is currently experiencing significant demographic shifts which affect in different manners both employment and pension sustainability. The 2025 review highlights a number of structural areas that require further examination. Against this backdrop the Pension Strategy Group is launching a public consultation to gather views on key policy questions that will help shape the future direction of Malta’s pension system. Public feedback will contribute to the ongoing development of a pension framework that remains resilient, equitable and responsive to the needs of current and future generations.
Consultation questions:
Should cost-of-living adjustments be regularly reassessed using a new framework, and if so, what type?
Should pension adequacy be measured using full household income and living circumstances?
Should an investment vehicle for pension contributions be introduced to strengthen long-term returns?
Should limitations on non-basic wages be considered to enhance fairness and predictability in pension outcomes?
Would analysing full contribution records help identify gaps that should guide reform?
Should current tax incentives for private pensions be extended?
Given that the Government plans to proceed with an auto-enrolment private pension system, what considerations should be taken into account to ensure that the system effectively strengthens retirement savings and reduces long-term pressure on the state pension?
Given the positive 2026 Budget Measure widening the eligibility for child-rearing contribution credits, should further attention be given to how child-rearing affects lifetime income and pensions?
Should government prioritize the harmonization of the pre-62 and post-62 maximum pensionable income levels?
Should the Guaranteed National Minimum Pension Level be somehow linked to the at-risk-of-poverty level?
Should the current distinction between single and married GNML rates be widened further?
Should the 42-year contribution requirement be revisited to ensure it remains fair and achievable?
Should study credits be extended to part-time students to better fill contribution gaps?
Should a long-term strategic framework for continuous pension evaluation and reform be developed?
The general public is invited to submit feedback on the Strategic Review on the Adequacy, Sustainability, and Solidarity of Malta’s Pension System until the 3rd of April 2026.
The public consultation document can be accessed via the link below:
https://familja.gov.mt/wp-content/uploads/2026/01/2025-PensionStrategyGroupReportforPublicConsultation-FINAL.pdf
