Urgent need for alternative pension arrangements – BOV

Alternative arrangements outside state pension are urgently required as the number of working age people per pensioner is expected to decrease despite the increase in state pension, affirmed Bank of Valletta, BOV, in a press release.

The increase in life expectancy as a result of healthier diets and improved medical care will lead to an increase in life expectancy over the next four decades, said Mark Vella, Head of Business and Marketing at BOV Asset Management during the second quarter seminar organised by MHRA. Eurostat data indicates that there will be two people of working age for every person in pensionable age by 2050.

In the same press release, BOV stated that last year the Maltese Government introduced the Voluntary Occupational Pension Schemes Rules together with a number of fiscal measures to make these pension schemes attractive for both employers and employees. An Occupational Pension Scheme is set up by the employer, and both the employer and employee can contribute an amount of money into the scheme on a regular basis. Pension benefits will supplement the state pension at retirement age, furthered the press release.