Plans to raise
retirement age to 65
government is to propose raising the retirement age to 65 in its pension
reforms, according to government sources.
proposals are expected to be presented to the Welfare Reform Commission
Policy Minister Lawrence Gonzi and Finance Minister John Dalli have been
working hand in hand on the proposals on the basis of a number of studies
on the welfare gap problem and, particularly, the sustainability of
pensions as the number of pensioners rises in relation to the number of
workers making national insurance contributions.
figures show we are sitting on a time bomb," the sources said.
retirement age will be raised gradually and those who are already close to
retirement would not be affected.
government will also propose incentives to encourage investment in private
pension schemes to supplement the government pension. A basic minimum
government pension will be established as a safety net.
government's proposals will be open for discussion. However, the
government will make it clear that decisions will have to be taken in the
very near future. The country cannot continue to postpone crucial
decisions," the sources said.
survey commissioned recently by The Sunday Times showed that 38 per cent
agreed with raising the pensionable age to 65 as one way of securing
current pension levels. Women (63.4 per cent) were more strongly against
the implementation of such a measure than men (60.5 per cent).