Malta’s pension entitlements reached €37.5 billion by the end of 2021, equivalent to 244.4% of the national GDP. These entitlements reflect future pension payments based on contributions made during individuals’ working lives. 

Social Security pensions comprised the majority, at €34.7 billion or 92.6% of the total. Social contributions amounted to €2.3 billion, primarily funding the Social Security Pension system. 

In 2021, there were 407,238 individuals contributing to pensions, including 20.4% foreigners with a residence permit.

Pension payments totaled €1.0 billion, with €0.8 billion allocated to Old Age pensions, marking a 15.2% increase from 2018. 

Different discount rates tested on Malta’s Accrued-to-date pension entitlement model showed varying results. A one percent discount rate increased pension obligations by 26.8% to €47.5 billion, while a three percent rate decreased liabilities by 19.2% to €30.3 billion.

Compared to other European countries, Malta’s pension obligations were relatively low, ranking fifth lowest at 244.4% of GDP. Spain, Austria, and Italy reported the highest ratios, while Denmark had the lowest share at 94.0% of GDP.

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Source: NSO