Contributory Retirement Pension

Overview

The Contributory Retirement Pension may be awarded to a person who reaches retirement age.

For information regarding cross-border situations please click here.

What you’ll get

The Contributory Retirement Pension is paid every 4 weeks in advance.

There are 3 categories of pensions a person can receive:

  • TTP – Two-Thirds Pension which is earnings related according to the social security contribution average.
  • RP – Retirement Pension which is based on flat rates and is paid to claimants in receipt of a Service Pension.
  • NMP – National Minimum Pension which is paid to claimants paying a low rate of social security contributions.

For those pensioners who were in receipt of a pension before 2006, and at the time, were entitled to a one-time grant which was incorporated to the rate of pension, are still being paid for each coming year.

Please click here for a Schedule of Benefits Rates.

You may make use of an online Calculator to calculate your potential Contributory Retirement Pension entitlement.

Eligibility

General eligibility criteria:

A person may be eligible to a Contributory Retirement Pension if the following criteria are fulfilled.

  1. If a person is born:
    • Between 1952 and 1955, the pension age is 62 years – for employed persons, pension will be calculated on the best 3 consecutive years in the last 11 years. While for self-employed/self-occupied persons, pension will be calculated on the best 10 consecutive calendar years in the last 11 years.
    • Between 1956 and 1958, the pension age is 63 years – for employed persons, pension will be calculated on the best 3 consecutive years in the last 12 years. While for self-employed/self-occupied persons, pension will be calculated on the best 10 consecutive calendar years in the last 12 years.
    • Between 1959 and 1961, the pension age is 64 years – for employed persons, pension will be calculated on the best 3 consecutive years in the last 13 years. While for self-employed/self-occupied persons, pension will be calculated on the best 10 consecutive calendar years in the last 13 years.
    • Between 1962 and 1968, the pension age is 65 years – for employed, self-employed or self-occupied persons, pension will be calculated on the best 10 calendar years out of the full 40 years.
    • On or after the 1st January 1969, the pension age is 65 years – for employed, self-employed or self-occupied persons, pension will be calculated on the best 10 calendar years out of the full 41 years.

However, a person who reaches 61 years of age can opt for an earlier pension entitlement provided that this person will not remain in any gainful occupation and has paid the stipulated contributions between age 18 and date of retirement, as follows:

  • 35 years, paid or credited contributions for a person born during calendar years 1952 to 1961 (Total number of Social Security Contributions required for this period is 1820).
  • 40 years, paid or credited contributions for a person born during calendar years 1962 to 1968 (Total number of Social Security Contributions required for this period is 2080).
  • 41 years, paid or credited contributions for a person born on or after 1st January 1969, of which 35 need to be paid contributions (Total number of Social Security Contributions required for this period is 2132).

A person who opts for an early pension opt-out (61 years of age) may have a gainful occupation after reaching his pension age as indicated above.

2. Claimant has been employed or self-employed prior to retirement/pension age.

3. On the date of retirement/pension age, claimant satisfies the relevant Social Security Contribution conditions.

4. A Contributory Retirement Pension is awarded as from the day following date of retirement/pension age.

Documentation required

General documentation:

  • FS 3 for year prior retirement – example – retiring in 2022 – FS 3 2021
  • Pensioners who choose the Early Opt Out at age 61, are to provide the termination date from Jobs Plus.
  • Government employees may have the NI 13 already inserted on system but if not, a Termination of Employment certificate is required.
  • Ensure that your banking details held by the Department of Social Security are updated to receive payments by direct deposit in a bank account. The IBAN number should be a local savings or current account, but not a loan account. The indicated account should be in the name of the beneficiary only. Banking details may be updated on mySocialSecurity.

How to apply

Three months prior to pension age, a notification letter is sent to the prospective pensioner requesting certain details for the award of a Contributory Retirement Pension.  This notification letter is to be signed and returned to the Department of Social Security, so that the pension will continue to be processed.  In the case where a claimant chooses an early opt-out pension, claimant is to apply from his / her end, as no letter of notification is issued in such cases where person decides to retire before his pension age.

The claim for retirement pension must be completed within 6 months of the retirement date or pension age. When the claim is not completed within this period, the pension will be payable with effect from the date on which the claim is submitted.

Fill in and submit the application online.

For other Incentives for Persons keeping their employment beyond their Pension Age, click here.