The editorial of Times of Malta of June 19 was titled ‘Downward spiral for older adults’ and made several claims about the elderly facing ever-higher rates of social exclusion.

While recognising that those aged over 65 face particular challenges, the picture depicted in this editorial does not, in my opinion, correctly represent the data recently published by the NSO and that available on the Eurostat database.

For instance, the NSO release indicates that, between 2021 and 2022, the mean value for the overall life satisfaction of those aged 65+ reached 7.1, up from 6.8 in 2021. Thus, rather than facing a downward spiral, older adults in their responses showed that they felt more satisfied with their lives.

The indicator of the risk of poverty and social exclusion, which the editorial refers to, is divided into two components – the proportion of the population at risk of poverty and the proportion which is materially and socially deprived.

One is a relative poverty measure and the other is an absolute measure. The first compares the income of a group with that of the population while the second sees whether a group is able to reach a certain standard of living (say, face unexpected financial expenses, etc.).

Eurostat data indicate that, whereas in 2014, 22% of those aged 65+ were materially and socially deprived, by 2022, the proportion had fallen to 12%. This compares to the situation across the EU, where the proportion fell from 17% to 11%.

Thus, the trend over time in Malta was better than in the rest of Europe and compares very well with the European average in terms of relative position.

It is true that the relative poverty measure shows a worsening situation for older adults. However, it is important to understand what this measure looks at.

It does not show that older adults have a worse income than before but that, relative to the increase in income across the population (including those in employment), their income has grown by less.

The poverty threshold here is defined as 60% of the median equivalised disposable income in the country and is not the income needed to reach some given level of consumption.

The 60% benchmark for a single person has risen from €7,685 in 2014 to €10,893 in 2022, an increase of 42%.

To show how substantial this is, suffice it to say that, in the same period in Germany, the benchmark rose by 27%. In Italy, the increase was of just 18%.

It is important to understand that the fact that the 60% benchmark increased by 42% does not mean that the cost of living in Malta increased by that percentage. To measure the change in the cost of living, it is best to look at the retail price index, which shows an increase of 15% between 2014 and 2022.

While the income of older adults in Malta is growing, it is growing by less than that of the overall population- Mark Musu

Between 2014 and 2022, Eurostat data shows that the median equivalised disposable income of Maltese persons aged 65 and over rose from €10,327 to €13,886. This represents an increase of 34%, which is more than twice the increase observed in the retail price index during the same period.

This shows that the purchasing power of older adults has not just been maintained over time but has improved.

Once again, it is pertinent to compare with what has happened in Europe. In Germany, between 2014 and 2022, the median equivalised disposable income of those aged 65 and over rose by 20, while, in Italy, the rise was of 16%. In these countries, the cost of living rose by 19% and 14% respectively. So, in both countries, older adults barely managed to maintain their purchasing power intact.

All this indicates that a correct interpretation of the NSO data is that while the income of older adults in Malta is growing, it is growing by less than that of the overall population, which includes all employed persons.

There are a number of important reasons for this.

The most important is that income growth in Malta during the last years was boosted greatly by the rise in female labour participation. Whereas, back in 2014, most working age householdsdepended on one wage, now the majority are two-earner households. This has boosted average incomes of families considerably.

By contrast, among the pensioner population, the majority are still dependent on one pension. So even if pensions were increasing in line or even more than the increase in average wages, they would not be able to match the increase in average income.

This is because part of the latter reflects not just the increase in the average wage of the husband but the fact that the wife is now working whereas, in the past, the wife would not be in employment.

While acknowledging that older adults face significant challenges which we are committed to help them face and surmount, it is important to understand them correctly in order to tackle them better.

Mark Musù is permanent secretary at the Ministry for Social Policy and Children’s Rights.