If you are born after 1962, the statutory retirement age in Malta is 65 years. In Malta you are entitled for a state pension if you are in employment (or self-employed) and pay a social security contribution.
If you are born after 1969, there must be at least 41 years of contributions to receive a full state pension.
But what do we mean when we say full state pension?
Your pension in Malta will be calculated on two thirds of your salary, subject to a capping. First and foremost, to arrive at an individual’s final state pension, the income formula for someone born after 1st January 1962 is based on the best 10 years of the last 40 years.
The maximum pensionable income (for people born after 1962) in 2023 is 26,831, which means that you will not get more than two thirds of this salary as a pension.
Do you think that you will manage to live comfortably with this amount? The best time to start saving for your retirement is when you receive your first ever pay cheque. The second-best time? This month.