President Dr Mohamed Muizzu has ratified the sixth amendment to the Maldives Pension Act, introducing a series of reforms that expand how citizens can access their pension savings and strengthen the overall administration of the national pension system.
The amendment, signed into law on Thursday, allows pension funds to be used as collateral for housing loans, giving citizens greater financial flexibility when securing a home. It also permits pension savings to be withdrawn to cover costs associated with terminal illness treatment and Hajj expenses, two areas that carry significant financial and personal weight for many Maldivians.
Broader Structural Changes
Beyond expanded access, the law introduces revisions to the principles governing the basic pension scheme and reinforces the structural framework of the country’s national pension system. The reforms are aimed at making the system more responsive to the real-life financial needs of citizens while ensuring its long-term sustainability.
The amendment also introduces a new eligibility condition: individuals whose income exceeds the amount provided under the senior citizens’ basic pension scheme will no longer qualify to receive that benefit. The change is designed to better target support toward those who need it most.
The ratification marks another legislative step under President Muizzu’s administration in advancing social protection policy, building on broader efforts to improve the financial wellbeing of Maldivian citizens.
