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
Outcome of National Consultation & 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 § 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 Born between Potential Pension € 5,763 € 9,333 € 12,000 € 12,000 € 12,000 € 12,000 € 12,000 € 12,000 € 12,000 € 12,000 € 12,000 1952 and 1961 Shortfall in Annual € 2,882 € 4,667 € 6,000 € 13,000 € 18,000 € 23,000 € 28,000 € 33,000 € 38,000 € 43,000 € 48,000 Income 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 Born on and Potential Pension € 6,667 € 10,667 € 13,333 € 17,381 € 17,381 € 17,381 € 17,381 € 17,381 € 17,381 € 17,381 € 17,381 After 1962 Shortfall in Annual € 3,333 € 5,333 € 6,667 € 8,691 € 112,619 € 17,619 € 22,619 € 27,619 € 32,619 € 37,619 € 42,619 Income Percentage 33.33% 33.33% 33.33% 33.33% 42.06% 50.34% 56.55% 61.38% 65.24% 68.24% 71.03%
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 §
Action 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 §
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 Key Messages: Knowledge Planning Action Honeycomb and the Honey Bee Growth § Provision § Nurturing § Community § Organisation § Productivity §
STRATEGY FOR RETIREMENT AND FINANCIAL CAPABILITY KNOWLEDGE, PLANNING, ACTION financialcapability.mfss@gov.mt
Recommend
More recommend
