VALLETTA (MALTA) (ITALPRESS/MNA) – Malta’s pension system owes much of its current stability to inward migration, but long-term demographic and housing pressures pose growing risks, according to a strategic review published this week.
The findings are contained in the 2025 Strategic Review on the Adequacy,
Sustainability and Solidarity of Malta’s Pension System, mandated every
five years under the Social Security Act.
With a low fertility rate of 1.06 and an ageing workforce, the report highlights foreign workers as essential to sustaining the pay-as-you-go pension model.
Between 2008 and 2023, social security contributors rose by 87% to 283,000, largely driven by migrant labour. Of nearly 245,000 foreign contributors over that period, only 5,736—just 2.3%—earned pension
entitlements.
High turnover among migrants provides short-term fiscal relief, as many leave Malta before qualifying for pensions, generating contributions without long-term liabilities.
However, the review cautions that reliance on migration alone will not be enough as the working-age population is projected to fall to 51% by 2070.
Housing costs are flagged as a key threat to pension adequacy, with renting pensioners identified as the most financially vulnerable.
The report recommends reforms including private pension auto-enrolment, revised benefit structures, and linking pension increases to both wage growth and inflation. Public feedback is open until April 3, 2026.
– photo IPA Agency –
(ITALPRESS).
