[WATCH] PN warns 'discriminatory' pension plan will leave people in poverty

PN claim that proposed €30 monthly increase to minimum pension not enough to ensure decent standard of living

The government's proposals to reform the pension system will still leave several elderly people at risk of poverty, the Nationalist Party warned.

According to the plan, the monthly minimum pension will increase from €590 to €620.

Its introduction will be staggered and only pensioners aged 75 years or older will benefit from its introduction in 2016.

Shadow social solidarity minister Paula Mifsud Bonnici told a press conference that this measure is discriminatory against pensioners on the €590 pension who are younger than 75 years old and called on the government to raise the minimum pension for everyone next year.

She also questioned whether a monthly €620 pension would be a high enough raise to allow pensioners a decent standard of living, rubbishing claims that the government cannot afford to increase it further.

"It managed to find €3.5 million to buy half a property in Old Mint Street and €4.2 million to buy Cafe Premier," she said, referring to two recent government controversies.

She warned that 34% of the Maltese population are at risk of poverty, higher than the EU average, and that the figure is on the rise, despite Labour’s pre-electoral pledge t eradicate poverty from the islands.

However, questioned what the monthly minimum pension should be, she simply replied that it should be higher than €620.

PN deputy leader Mario de Marco called for a “mature” debate on the feasibility of introducing a second pillar pension, quoting Chamber of Commerce president Anton Borg as having suggested a voluntary second pillar scheme.

He also urged the government to offer stronger fiscal incentives for people to save up for a private pension, arguing their recent initiatives in this regard have proven unsuccessful.