The Insurance Association Malta has urged the government to make workplace pensions mandatory in the forthcoming budget while introducing a transitory framework for employers to contribute towards their employees' pensions.

"With people living longer and not always managing to set aside sufficient funds for their future, a mandatory workplace pension will help to smooth the transition to retirement while maintaining a good standard of living," it said.

“Malta should adopt the British model and introduce mandatory workplace pensions with a voluntary opt-out. Experience has shown that for this to succeed, employers should also pool in and contribute to entice employees to take part,” the association said.

The Association said private pensions were still relatively under-developed. Although the foundations had been laid, workplace pensions and private third pillar pensions still had a long way to go.

“As the government works on finalising its budget for 2025, we urge it to consider our proposals and present a more ambitious and courageous approach by introducing mandatory workplace pensions that will also encourage employers to contribute. In this way employees will think twice before opting out,” it said.

With contributions made tax deductible for employers, they could also benefit from a tax credit on the amounts made, the association said. 

It added that at a recent meeting at the finance ministry, it also called for effective enforcement of drink and drug-driving laws and raised issues related to workplace safety, electric vehicles and the challenges the repair industry faced, as well as fire safety in buildings.