Last year, the Finance Ministry spent MVR 1.3 billion on old-age allowances, with MVR 298 million going to retirees. An estimated MVR 1.5 billion is expected to be allocated next year.
Government has decided to revise regulations for the old age allowance, targeting those who cannot afford retirement on their own.
According to next year’s budget, the elderly population in the Maldives is growing, leading to rising expenditures on retirement benefits for individuals over 65.
Last year, the Finance Ministry spent MVR 1.3 billion on old-age allowances, with MVR 298 million going to retirees. An estimated MVR 1.5 billion is expected to be allocated next year.
The Finance Ministry is implementing reforms to make the pension system more sustainable, addressing inconsistencies in the pension amounts paid by institutions to ensure uniform benefits. Legal changes are also being prepared to standardize pension benefits for new retirees.
Starting in April, the basic pension allowance for individuals over 65 will be directed at low-income earners based on affordability. With this change, the pension allowance will transition to a targeted pension system, the ministry announced in the budget.
Sign In
