STRATEGY FOR RETIREMENT AND FINANCIAL CAPABILITY KNOWLEDGE, - - PowerPoint PPT Presentation

STRATEGY

FOR RETIREMENT AND FINANCIAL CAPABILITY

KNOWLEDGE, PLANNING, ACTION

BACKGROUND

§ 2010 Pension Working Group and 2015 Pension Strategy Group Recommendations § Draft National Retirement and Financial Literacy Strategy § National Consultation and Discussion

§ Vulnerable persons § Establishing Locum of Responsibility for Coordinating Strategy Implementation § Financial Education in the National Education Curriculum § Home Equity § Breadth of Education, Knowledge and Information Campaign § Careful Messaging of Communication Strategies § Refer to Financial Capability and not Financial Literacy § Communicating in Maltese and English

Outcome of National Consultation & Discussion

Outcome of National Consultation & Discussion

§ Low Level of Preparedness for Retirement Planning § What Constitutes ‘Enough’ Retirement Income? § Risks Affecting Savings during Retirement

Gross Wage €8,645 €14,000 €18,000 €25,000 €30,000 €35,000 €40,000 €45,000 €50,000 €55,000 €60,000 Potential Pension €5,763 €9,333 €12,000 €12,000 €12,000 €12,000 €12,000 €12,000 €12,000 €12,000 €12,000 Shortfall in Annual Income €2,882 €4,667 €6,000 €13,000 €18,000 €23,000 €28,000 €33,000 €38,000 €43,000 €48,000 Percentage 33.34% 33.34% 33.34% 52% 60% 65.71% 70% 73.33% 76% 78.18% 80% Gross Wage €10,000 €16,000 €20,000 €26,072 €30,000 €35,000 €40,000 €45,000 €50,000 €55,000 €60,000 Potential Pension €6,667 €10,667 €13,333 €17,381 €17,381 €17,381 €17,381 €17,381 €17,381 €17,381 €17,381 Shortfall in Annual Income €3,333 €5,333 €6,667 €8,691 €112,619 €17,619 €22,619 €27,619 €32,619 €37,619 €42,619 Percentage 33.33% 33.33% 33.33% 33.33% 42.06% 50.34% 56.55% 61.38% 65.24% 68.24% 71.03%

Born between 1952 and 1961 Born on and After 1962

Importance of Financial Capability

§ National impact § Vulnerable groups § Behavioral Heuristics § Importance of Understanding Financial Products and Knowing One’s consumer rights

Action

Vision “improving the personal financial capability of Maltese citizens during life-events and retirement to enable them to reach better informed financial decisions that fit their individual circumstances.” Core Knowledge and Skills Domains for a Maltese Citizen to be Financially Capable § Managing debt § Managing daily budget § Building a safety net § Planning for the future § Understanding the basics of the financial landscape § Understanding basic consumer rights

Use of Educational Pathways to Promulgate Knowledge

§ Teaching resources portal § Work with interested stakeholders to put together a gamification portfolio § Work with local communities, unions, employers and NGO to design and deliver financial education programmes covering different life-cycle stages § Work with compulsory education to see how the Retirement and Financial Capability Framework can be implemented across Levels 8, 9 and 10.; and work with stakeholders in higher and further education to create knowledge routes on retirement and financial capability

Action

Trusted and Independent Knowledge, Education and Information

§ Teenagers § Young Adults (20-34 year old) § Female Young Adults (20-34 year old) § Adults (35 year old to pre-retirement) § Female Adults (35 year old to pre-retirement) § Self Employed Persons § Adults (and families) in Low Income Employment or in a State of Deprivation § Adults in Employment and Not Having their Social Security Contribution Paid § Separated and Divorced Women § Older Women (60+) and Women in Widowhood § Single Mothers

Action

Work in Partnerships to Strengthen Connections among all Parties Involved

§ Establish ad hoc working groups § Work with and through existing bodies § Participate in international fora § Twin with similar organisations overseas

Action

Implementation Coordinating Body

Retirement and Financial Capability Group § Ministry for the Family and Social Solidarity § Ministry for Finance § Ministry for Education and Employment § Ministry for Social Dialogue, Consumer Affairs and Civil Liberties § Department for Social Security § FinanceMalta § Office of the Permanent Secretary, MFSS

Next Steps

§ Follow up with stakeholders to:

• Establish strategic partnerships
• Identify joint initiatives
• Establish resource sharing MoUs

§ Launch Communications Strategy § Establish working relationships with similar entities with overseas similar bodies

Realising the Strategy

Financing § Government § Institutional Partners § Members / Affiliate Members § In-kind Support § European Social Fund Secretariat § Small § Work with and through existing networks

Branding and Key Messages

§ Growth § Provision § Nurturing § Community § Organisation § Productivity Key Messages: Knowledge Planning Action Honeycomb and the Honey Bee

financialcapability.mfss@gov.mt

STRATEGY

FOR RETIREMENT AND FINANCIAL CAPABILITY

KNOWLEDGE, PLANNING, ACTION