No Increase In Retirement Age Or Social Security Contribution Rate

Following the conclusion of the public consultation process on the 2025 Strategic Pensions Report, the Government, as promised in its Electoral Manifesto, is guaranteeing that there will be no increase either in the retirement age or in the social security contribution rate.

The Minister for Social Policy and Children's Rights, Michael Falzon, confirmed this and reiterated that the Government will continue to strengthen pensions through various measures planned throughout this legislature, beginning with the next Budget.

Among these measures, he mentioned a €50 per week increase in pensions spread over the entire legislative term, together with an adjustment to widows' pensions so that, from next year, they will be equivalent to the pension that the deceased spouse would have received if still alive. There will also be a Cost of Living Bonus, which from next year will be the same amount for everyone, and an increase in the Maximum Pensionable Income, which by 2028 will be the same for everyone, regardless of when they were born.

These are just a few of the many social measures that will be implemented over the next five years, not only for pensioners and older persons, but also for families, children, persons with disabilities, and other vulnerable individuals.

Minister Michael Falzon also confirmed that during the public consultation process on the Strategic Pensions Report, 14 submissions were received: 6 from organizations, 2 from private companies, and 6 from individuals.

He stated that this feedback was considered by the Strategic Pensions Group, led by Permanent Secretary Mark Musu, which is now formulating its final recommendations to the Government. These recommendations exclude any increase in the retirement age or in the social security contribution rate.

Minister Falzon concluded by saying that this is possible thanks to Malta's strong economy and public finances. The latest strategic report confirmed considerable improvements in both the adequacy and the sustainability of the country's pension system.

#MaltaDaily

Photo source: Michael Falzon