Government rules out raising retirement age and social security contributions<\/p>\n
The government has ruled out increasing either the retirement age or social security contribution rates, following the conclusion of the public consultation process on Malta’s 2025 Strategic Pensions Report.<\/p>\n
Confirming the decision, Minister for Social Policy Michael Falzon said the government would honour its electoral pledge and continue strengthening pensions through a series of measures planned for the current legislature, beginning with the next Budget.<\/p>\n
Among the measures are a €50 weekly increase in pensions spread over the course of the legislature, changes to widows’ pensions so that from next year they will be equivalent to the pension their spouse would have received had they still been alive, and the extension of the Cost of Living Bonus so that it will be the same for everyone from next year.<\/p>\n
Falzon also referred to planned increases in the Maximum Pensionable Income threshold, which by 2028 will be equal for all pensioners regardless of their year of birth.<\/p>\n
He said these measures form part of a broader package of social initiatives to be implemented over the next five years, benefiting not only pensioners and older persons, but also families, children, persons with disabilities and other vulnerable groups.<\/p>\n
Falzon said that 14 submissions were received during the public consultation process on the Strategic Pensions Report.<\/p>\n
These included six submissions from organisations, two from private companies and six from individuals.<\/p>\n
Falzon said the feedback was considered by the Strategic Pensions Group, chaired by Permanent Secretary Mark Musu, which is currently drawing up its final recommendations to government.<\/p>\n
He said those recommendations exclude any increase in the retirement age or in social security contribution rates.<\/p>\n
The Minister added that this was possible because of Malta’s strong economy and sound public finances.<\/p>\n
He said the latest strategic report had confirmed considerable improvements in both the adequacy and sustainability of the country’s pension system.<\/p>\n