Pensions Information

Retirement Pensions

 
Contributory retirement pensions can be divided into two schemes, the flat rate pensions and the two-thirds pensions.
 
The flat rate pensions are awarded to pensioners who also receive a service pension and to pensioners who have a low pensionable income. The two-thirds pensions are awarded to all other pensioners.
 
A full retirement pension requires a yearly average of at least 50 contributions from 1956 or from age 19 (whichever occurs later) and/or from age 18 if born after 1958 up to the last full year prior to the year of retirement.
 
With effect from January 2014, the pension age has increased to 62 years for both males and females and the accumulation of contributions for a full two-thirds pension has increased to 35 years.
 
Statutory Pension age is as follows:
 
Born Between Pension Age
​1952 and 1955 ​62
​1956 and 1958 ​63
​1959 and 1961 ​64
 
Born After
Pension Age
​1961 ​65
  
 
A person can opt to retire at age 61, provided he/she is not in any gainful occupation and has paid the stipulated contributions between age 18 and date of retirement as follows;
 
Born Between
No. of Paid Contributions
​1952 and 1961 ​1820
​1962 and 1968
​2080
 
Born After No. of Paid Contributions
​1968 ​2132
 
 
Incentives for persons keeping their employment beyond their Pension age.
 
This is the first step the Government of Malta will be taking and thus initially, this incentive will be open to workers in the private sector and self-occupation as follows;
 
Retirement Pension Age Opt to work till age*
% Increase in Pension Rate
Entitlement at Age
​61 ​62 ​5 ​62
​62 ​63 ​5.5 ​63
​63 ​64 ​6 ​64
​64 ​65 ​6.5 ​65
 
 
* without claiming their retirement pension at the retirement pension age
 
Those opting to postpone their Retirement Pension award for more than one year, will have their pension percentage increase accumulated as follows;
 
​Retirement Pension Age Opt to work till age*
% Increase in Pension Rate
Entitlement at Age
​61 ​63 ​10.5 ​63
​61 ​64 ​16.5 ​64
​61 ​65 ​23 ​65
​62 ​64 ​11.5 ​64
​62 ​65 ​18 ​65
​63 ​65 ​12.5 ​65
 
 
* without claiming their retirement pension at the retirement pension age
 
The percentage pension increase is cumulative and will be paid till date of pensioner’s demise.
 
The percentage pension increase will be payable to all eligible persons in receipt of a Contributory Retirement Pension who satisfy the above conditions including those in receipt of the Maximum Two Thirds Pension.
 
The percentage increase is payable apart from other pension increases, included Cost of Living Increases.
 
The percentage increase is transferred in the case of a Widows Pension.
 
Further information
 
The Incentives for persons keeping their employment beyond their Pension age comes into effect as from the 1st January 2016. Therefore, a person who was eligible for a Contributory Retirement Pension at least at age 61, but opts to claim his pension at least with a one year deferral, will benefit from the mentioned pension percentage increases. This increase will accumulate yearly as the pension award date is postponed. Agreement with employer is to be reached if a person opts to retire after own statutory pension age.
 
Hereunder are three examples that will help in explaining this new incentive (assuming that the cost of living allowance will be € 1.75 weekly).
 
1.       A person entitled to a contributory pension of € 8,000 per annum (€ 153.84 per week) at age 61.
 
Claimed Pension At Age Instead of Age Pension increases to Weekly Pension
​62 ​61 ​€8496 ​€163.38
​63 ​61 ​€8907 ​€171.29
​64 ​61 ​€9462 ​€181.96
​65 ​61 ​€10065 ​€191.56
 

Therefore, if a person who is entitled to a contributory pension of € 153.84 per week at age 61, continues employment till age 65 and thus claims his/her pension at age 65, would have his pension entitlement increase to € 193.56 per week, a net increase of nearly € 40 weekly.
 
2.       A person entitled to a contributory pension of € 9,500 per annum (€ 182.69 per week) at age 62
 
Claimed Pension at Age Instead of Age Pension Increases to Weekly Pension
​63 ​62 ​€10023 ​€192.75
​64 ​62 ​€10661 ​€205.01
​65 ​61 ​€11354 ​€218.35
 
Therefore, if a person who is entitled to a contributory pension of € 182.69 per week at age 62, continues employment till age 65 and thus claims his/her pension at age 65, would have his pension entitlement increase to € 218.35 per week, a net increase of nearly € 36 weekly.
 
3.       A person entitled to a contributory pension of € 11,500 per annum (€ 221.15 per week) at age 63
 
Claimed Pension at Age Instead of Age Pension Increases to
Weekly Pension
​64 ​63 ​€12190 ​€234.42
​65 ​63 ​€13006 ​€250.12
 
Therefore, if a person who is entitled to a contributory pension of € 221.15 per week at age 63 and continues employment till age 65 and thus claims his/her pension at age 65, he would have his pension entitlement increased to € 250.12 per week, a net increase of nearly € 29 weekly.​
 
 

Non-Contributory Age Pensions

 
Unemployed persons who are residents in Malta, over 60 and do not qualify for a contributory retirement pension because they do not have the minimum number of contributions paid or credited, may be entitled to a non-contributory age pension if they satisfy the capital and income means test.
 

Invalidity Pensions

 
Contributory invalidity pensions are awarded to persons who have at least paid 250 contributions and are suffering from a medical condition which according to the medical board of the Social Security Department renders them as permanently incapable for any full-time and/or any part-time employment.
 
Such persons must be incapable for work (suffering from their medical condition) for at least six months prior to their claim and in continuous employment and/or registering for work on the Part 1 register held by Jobsplus for at least one (1) year.
 
There are eight rates of Invalidity Pension according to the yearly average of contributions paid and/or credited and the civil status of the claimant. These rates are not related to the salary earned while in employment.
 

Widows Pensions

 
Contributory widow’s pensions are awarded to widows whose spouse had paid not less than 156 contributions and to widows where their spouse died as a result of a personal injury during the course of their duties (employment).
 
A widow's pension is also payable in full without any deductions if widow is carrying out a full-time gainful occupation and, where a widow re-marries, a flat rate widow's pension will be due.
 

Living Abroad

 
Maltese Citizens living in Australia/Canada/New Zealand
 
In order for Maltese nationals residing in Australia/Canada or New Zealand to claim a Maltese pension, they should lodge a claim through the social security institution of either country
 
Maltese Citizens living in the EU
 
In order for  Maltese nationals residing in an EU country to claim a Maltese pension, if the persons concerned had been insured in that country, they should lodge a claim through the social security of the same country. If the Maltese nationals concerned, reside in an EU country but never worked there, the application should be lodged directly with the Department. This can be done either by downloading the claim forms and sending them by post or by lodging a claim physically while on holiday in Malta. Claim forms for each type of pension can be downloaded from this website and selecting the appropriate section.
 
Maltese Citizens Residing in a Third Country
 
In order for Maltese nationals residing in a Third country to claim a Maltese pension, they should lodge an application directly with the Department. This can be done either by downloading the claim forms and sending them by post or by lodging a claim physically while on holiday in Malta. Claim forms for each type of pension can be downloaded from this website and selecting the appropriate section.
 
 
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