Once you reach 63 years of age, the retirement age, as indicated in table above, whether you have opted to retire at 61 (Early-Opt-Out) or at 63 (State Pension Age), you can resume work (if retired at 61) or continue to work (if retired at 63) as an employee or as a self-employed / self-occupied person and earn an income whilst receiving your Social Security Pension. If you take up such employment, you will continue to pay your social security contribution until you reach 65 years of age and taxes. The social security contributions paid after retirement age up to 65 are not assigned to your pension contribution history if you have paid all the necessary contributions prior to your pension assessment but are posted as an inter-generational contribution on your part.
|Born between 1956 and 1958|
|Your Retirement Age||63 years.|
|SS Contributions to be Accumulated||Maximum of 50 yearly contributions for a period of 35 years, which contributions need to be in the last 10 years prior to retirement and any other 25 years.|
|Calculation of your Social Security pension||employed: best 3 consecutive years in the last 12 years prior retirement year; self-employed/self-occupied: best 10 consecutive calendar years in the last 12 years prior to retirement year|
|Calculation of State pension income||2/3 of basic salary|
If you attained 61 years but have not yet attained pension age, may after attaining 61 years of age and terminating employment**, claim a pension before attaining pension age.
Conditions also include:
- has, since eighteenth birthday had a total of 1820 paid or credited contributions.
- **has registered with JOBs+ an employment termination form.
You can restart employment when you reach your statutory retirement age, 63. This is a ‘social cost’ that you are asked to incur for the decision you make to choose ‘leisure’ as against continuing to contribute productively up to your retirement age.
|Year||Maximum Pensionable Income|
We have all heard of the maximum weekly pension.
How much pension you are receiving depends upon the number of contributions paid and salary earned.
However, if you were in receipt of a salary greater than or equal to the maximum pensionable income, having paid 30 years of contributions (born on or before 1951), your pension income was calculated to the Maximum Pensionable Income threshold.
Year 2008: Maximum Pensionable Income: €16,601. If salary was greater or equal than said amount, and paid 30 years of contributions, you still received: €16,601 * (2/3)(two thirds) * (50/50)(full contribution average) / 52 (weekly) = €212.83 weekly year 2008
The Maximum Pensionable Income increases every year by the cost of living allowance. The cost of living adjustment for each year is announced in yearly Budget speech.
Right to credits to any insured person:
- entitled to Sickness Benefit, or Injury Benefit, or Unemployment Benefit, or Special Unemployment Benefit, or Invalidity Pension.
- who seek employment through ETC i.e. register under Part One of the Register kept in accordance with the provisions of the Employment and Training Services Act. They receive Unemployment Benefit and therefore gain benefit credits.
- following the performance of volunteering work in Malta or abroad
- who take a career break to care for their child
- entitled to the Carers’ Pension
- who retires or has retired from the service on a full pension from Government (examples an ex-member of the Malta Police Force or of the Armed Forces of Malta) on completion of service prior to reaching pension age
- who has continued with further and higher education.