President Muizzu Ratifies Pension Act Reforms to Expand Housing and Health Access

President Dr. Mohamed Muizzu has ratified the 6th Amendment to the Maldives Pension Act, introducing sweeping reforms to how citizens access and utilize their retirement savings. The legislation, which has now come into force following its publication in the Government Gazette, aims to strengthen the national pension system and provide critical financial flexibility for retirees and savers. One of the most significant shifts in the amended law allows individuals to use their pension funds as collateral for the construction or renovation of homes. This move addresses the pressing need for affordable housing by enabling citizens to leverage their long-term savings for immediate residential stability. Recognizing the financial burden of critical healthcare, the amendment also establishes a framework for the early release of pension savings for individuals diagnosed with terminal illnesses. The law outlines specific procedures to ensure that those facing life-threatening health crises can access their funds without undue bureaucratic delay. Furthermore, the reforms introduce new provisions for spiritual obligations, permitting the use of pension savings to secure Hajj placements in advance. These changes reflect a move toward a more versatile pension system that caters to the specific cultural and personal needs of the Maldivian population. However, the amendment also introduces stricter eligibility criteria for the basic pension scheme. Individuals whose personal income exceeds the amount granted as the basic pension for senior citizens will no longer be eligible for these payments, shifting the focus of the basic pension toward those most in need of state support. The bill was passed during the 19th sitting of the first session of the Parliament for 2026 on Thursday, May 14. Beyond the specific fund-use changes, the amendment incorporates various administrative updates designed to enhance the efficiency and oversight of the Pension Office, ensuring the long-term sustainability of the national pension fund.