Ageing populations: How other countries are tackling it and what Malta can learn

An ageing population is an irreversible global trend, and it risks posing serious challenges over the next few decades. Pension systems, designed when populations were younger and life expectancy shorter, are now under immense pressure. Malta, like other ageing populations, finds itself at a critical juncture, with recent National Statistics Office projections indicating that 28 per cent of its population will be over 65 by 2030.

To mitigate the impact of this demographic crisis, governments worldwide are implementing a raft of measures. While there is no one-size-fits-all solution, nations are amending pension laws, updating regulations, and introducing incentives to adapt to a changing world.

In the face of a shrinking workforce and rising pension costs, what can Malta learn from nations already navigating this crisis? Here’s how Japan, Singapore, Denmark, Belgium, and Greece are responding, and what Malta could consider.  

Japan’s robots

Japan’s approach in 2025 demonstrates how technology can alleviate the strains of an ageing society. As the country with the world’s oldest population – 31.5 per cent over 65 according to Statistics Japan – the government has implemented its Silver Tech Initiative with demonstrable results. The widespread adoption of AI-powered care robots in nursing homes has reduced staff workloads by 40 per cent, while abolishing mandatory retirement ages has pushed labor force participation among 65-69 year olds to 52.3 per cent, the highest in the OECD. 

These measures show how Malta might address its own care sector shortages and shrinking workforce.  

Singapore’s mandatory savings

Singapore has taken more radical steps with its 2025 population strategy.The city-state’s “re-employment age” is 68 and will be raised to 69 in 2026, which allows and encourages older workers to continue working as long as they are willing and able to, in the face of what Singapore is calling a “silver tsunami”. By 2030, one in five people in the city-state will be over 60. Added to this, Singaporeans have the third-highest life expectancy in the world, at 82.7 years.

The country has also introduced skills refresher courses, giving citizens a lump sum that can be used to engage in life-long learning beyond university. 

What makes Singapore stand out particularly is its Singapore’s Central Provident Fund (CPF) – a compulsory savings scheme that requires citizens to contribute a portion of their income towards retirement, healthcare, and housing. The government adjusts contribution rates based on age, ensuring higher savings as workers near retirement.

A new meritocratic immigration system prioritises younger, skilled migrants while restricting older dependents, a controversial but potentially necessary approach for small nations like Malta.

Denmark’s controversial moves

Denmark’s “Fair Lifespan Act” represents perhaps the most sustainable approach to pension reform. Implemented in 2024, the policy automatically adjusts retirement ages based on life expectancy data, currently set at 72 but projected to reach 74 by 2030, one of the highest retirement ages in the world. 

The country’s innovative reverse mentoring programs, where older and younger workers exchange skills, have reduced age-related workplace tensions by 37 per cent according to Copenhagen University research. For Malta, facing similar demographic pressures, Denmark’s dynamic system offers valuable insights into maintaining pension viability. 

However, while raising pension ages seems the most logical move considering we are living longer and healthier, it may prove hard to implement, as people could resist working more in their lives. 

Belgium’s senior contracts

Belgium has introduced innovative labour market reforms to promote flexible retirement, including phased retirement schemes and “time credit” systems that allow workers to reduce hours or bank leave days for early exit. While the government has proposed subsidised “senior contracts” to ease transitions, these measures are still being implemented as of 2025. Senior contracts are an innovative policy allowing older workers (typically 55+) to reduce their working hours while receiving partial wage supplements from the state or employer to offset income loss.

Belgium’s employment rate for workers aged 55–64 has risen steadily, reaching 56.2 percent in 2023 (Eurostat), up from 52.4 per cent  in 2019, though it remains below the EU leaders (e.g., Sweden at 77 per cent). The reforms aim to replicate successes seen in countries like Germany, where similar flexibility boosted older workers’ participation, but their full impact in Belgium is not yet measurable.

Greece’s digitalisation

Facing one of Europe’s most rapidly ageing populations, Greece has launched a multi-pronged strategy combining pension digitisation, flexible retirement incentives, and eldercare integration. The ERGANI II platform (2021) automates pension contributions and detects undeclared labor, saving €280 million annually by reducing evasion. Meanwhile, Greece’s “postponed retirement bonus” offers up to 12 per cent higher pensions for workers delaying retirement beyond 62, incentivising longer careers.

To address eldercare gaps, Greece is also piloting community-based “day centres” with telehealth links to hospitals, a cost-effective alternative to institutional care.

This EU-backed digitisation could be a crucial lesson for Malta’s still paper-heavy administration.  

For Malta, the time for bold action is crucial. With its old-age dependency ratio deteriorating faster than EU averages, the country must consider fundamental reforms. Linking retirement ages to life expectancy, investing in care technologies, flexible retirement pathways, digitising pension administration, and implementing strategic immigration policies could all help address the demographic challenge.

Indeed, the experiences of Japan, Singapore, Denmark, Belgium and Greece provide multiple pathways forward – the question remains which solutions Malta will choose to implement with the urgency the situation demands.