As per the proposal, the government would invest €5,000 in a trust fund for every child born in Malta. While all Maltese children would automatically be eligible, foreign children would only be eligible if their parents meet certain criteria, including having resided in Malta for at least five years.

Children will only be able to access the funds once they turn 20 for specific reasons – such as post-graduate support, down payment on a home, seed funding for a new business or transfer to a private pension plan.

Parents, guardians or relatives would also be allowed to add voluntary contributions to this trust fund, and the government could incentivise them to do so, such as by pledging €100 for every €500 deposited privately per year.

Dividends and returns will be capitalised to the fund, and the PN is estimating a compound growth rate of between 2.5 – 4% based on conservative to balanced projections of a low-risk investment strategy.

In a conservative market scenario, the PN is estimating an annual return of 2%, meaning that the initial €5,000 investment would grow to €7,430 after 20 years.

It is estimated to grow to €9,930 in a balanced market scenario, €13,260 in a growth scenario, and €17,260 in an aggressive one.

If parents contribute €500 to this fund per year, the compound effect would significantly enhance the final value of the fund – €20,570 in a conservative scenario, €23,980 in a balanced scenario, €28,520 in a growth scenario, and €34,300 in an aggressive scenario.

“This structure encapsulates the essence of shared fiscal responsibility — where the State lays the foundation and families build upon it,” the PN said.

“It also reinforces the cultural value of saving for the future, transforming what begins as a social policy into a national wealth-building framework that strengthens both households and the economy.”