More than two-thirds of Maltese citizens believe that arrangements should be made for a private pension scheme to complement the state pension, according to a new national study commissioned by Malta’s Ministry for Social Policy and Children’s Rights.

The research, conducted by Professor Vincent Marmara, aimed to provide a clearer understanding of public perceptions regarding the country’s social services and benefits. The findings revealed strong overall satisfaction with Malta’s social welfare system but a desire for greater pension provision.

Commenting on the study, Minister for Social Policy and Children's Rights, Michael Falzon, said the government will continuously provide social support to those in need while holistically improving the quality of life for everyone.

“We are satisfied with the results that have emerged, because the majority of people are satisfied with the social services we offer. Of course, there is always room for improvement and therefore we will be analysing these results and strengthening those areas that require further commitment," Falzon said.

The survey comes amid plans by the government to introduce automatic enrolment (AE) (AE) for occupational pensions, a policy it consulted on over the summer.

Currently, Malta’s pension system consists of a pay-as-you-go first-pillar state system and voluntary second- and third-pillar pension systems.

The government is concerned by a rising old-age dependency ratio – projected to increase from 27.1 per cent in 2022 to 65.4 per cent in 2070 – and a pension adequacy gap.

The state pension benefit ratio is projected to decrease from 39 per cent in 2022 to 32 per cent by 2070, meaning many retirees will struggle to maintain their pre-retirement standard of living and fall short of OECD averages.

Under the proposed AE system, employees will be auto-enrolled into workplace pension schemes with a minimum contribution rate of €50 per month. Employer contributions will be voluntary to “maintain business flexibility”, the consultation stated.

While no official rollout timeline has been confirmed, the consultation suggests the scheme could begin in the public sector before expanding to private-sector employees.

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