President Dr Mohamed Muizzu has reaffirmed his commitment to improving the pension scheme in the Maldives. The President’s statement came during the “Raees ge Javaab” series, a platform for citizens to engage directly with the leader on various issues.
A citizen raised concerns regarding the ease of accessing pension funds after retirement. President Muizzu acknowledged that the current pension system is governed by specific laws and that any significant changes would necessitate legislative action. However, he stressed his desire to strengthen the pension scheme and highlighted the need for parliamentary reforms to accomplish this goal.
Pensions constitute funds reserved for individuals to use in their later years or upon retirement, encompassing state provisions for elderly individuals without income. Pensions play a crucial role in ensuring financial security for individuals as they enter retirement. They provide a steady source of income during a phase of life when earning potential may decline. Pensions offer peace of mind and stability, allowing retirees to maintain their standard of living and meet essential needs without the burden of seeking employment later in life. Furthermore, a robust pension system contributes to overall social well-being by reducing poverty among the elderly.
Maldives Pension Administration Office (MPAO) also recently announced a reduction in administrative fees associated with managing the Maldives Retirement Pension Scheme. The revised fees now stand at 0.5% per annum for both pre-retirement and post-retirement funds, down from the previous 0.6%. Post-retirement funds will incur a further reduced fee of 0.3%.
