Retirement Pension

Overview

The Contributory Retirement Pension is a long-term Social Security benefit awarded to individuals who have reached their statutory pension age and satisfies the required Social Security contribution conditions. It provides a reliable source of income during retirement, reflecting both the individual’s employment history and contribution record.

For information regarding cross-border situations please click here.

What you’ll get

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

There are three (3) distinct categories of contributory retirement pensions, each designed to address different contribution histories and employment circumstances:

Two-Thirds Pension (TTP) – An earnings-related pension calculated according to the individual’s Social Security contribution average. It reflects the worker’s insured earnings over the relevant assessment period.
Retirement Pension – Flat Rate (RP) – A flat-rate pension awarded to individuals who receive a Service Pension.
National Minimum Pension (NMP) – A safety-net rate designed for individual who paid lower-rate Social Security contributions.

Please click here for a Schedule of Benefits Rates.

Eligibility

Pension age depends on the person’s year of birth and whether they were employed or self-employed:

Age 62 years if born between 1952 and 1955.
Age 63 years if born between 1956 and 1958.
Age 64 years if born between 1959 and 1961.
Age 65 years if born from 1962 onwards.

Early Retirement at 61 years of age

A person may choose to retire before the statutory retirement age, but cannot receive a retirement pension earlier than 61 years of age, provided they are not and do not continue to be engaged in gainful employment and must meet the required number of contributions:

1952–1961 births: 35 years (1820 contributions)
1962–1968 births: 40 years (2080 contributions)
1969–1975 births: 41 years (2132 contributions; 35 must be paid)
1976 onwards: 42 years (2184 contributions; 35 must be paid)

Incentives for Postponing Pension – Working Beyond Pension Age

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

Expand Pension Eligibility Measures

The minimum of 10 years of social security contribution requirement now applies to all pensioners, regardless of whether they were born before or after 1962. Contributions made before reaching the minimum working age (that is, under-18 or 19), including those under the 520 contribution measures, are counted for all pensioner cohorts.

Documentation required

FS3 of the year prior to retirement pension application for employees.
Profit & Loss account which needs to be dated and signed by an accountant, together with social security contribution receipts for self-occupied persons.
Company Memorandum of Understanding documents for directors/shareholders for applicants born before 1962.
Jobsplus employment termination as proof if applicants are choosing for an early opt-out retirement pension.
If the applicant is in receipt of any other pension, including a foreign pension, a copy of an official document showing the original earnings needs to be provided.
Document provided by the Malta Enterprise for the years where the applicant was in receipt of the COVID Wage Supplement.
Persons who opt for early retirement, that is between 61 and 64 years of age, need to make sure that all their employments are terminated with Jobsplus.
Bank Statement indicating the account holder and its IBAN account, which must be in the name of the beneficiary only. Banking details may also be updated online on mySocialSecurity.

How to apply

Three months prior to reaching pension age, prospective pensioners are sent a notification letter by the Department of Social Security, requesting or confirming necessary details, such as the IBAN. Claimants must complete and return the form for processing within six months from the retirement age for the pension to be continued for processing. Late submissions are payable from the submission date.

In the case where a claimant chooses an early opt-out pension, that is between the age of 61 and 64 years, the claimant must apply from their own end as no letter of notification is issued.

Fill in and submit the application online.

For further information, including making retrospective payments and incentives for persons with disabilities reaching retirement age, click here.