No CMDA support to reduce basic pension age to 60

Capital Market Development Authority (CMDA) has said that the reduction of basic pension age to 60 might result in causing damage to the Maldivian state and people.

A statement by CMDA last Wednesday says that the reduction of pension age to 60 would negatively affect the current pension system.

“It would reduce the average long-term economic productivity, and bring down economic activity,” CMDA said.

CMDA said that under the pension act, a retirement pension scheme has been established for the elderly, which required employers and employees to contribute a total of 14 percent of salaries. If this scheme is reduced to 60 years, it would result in great losses.

The statement by CMDA was issued following a bill submitted by Felidhoo MP Yoosuf Naeem to reduce the age of basic pension from 60 to 65.