Although the 2007 pension reforms increased the retirement age as follows:
| Date of Birth | Retirement Age |
| 1952 to 1955 | 62 years of age |
| 1956 to 1958 | 63 years of age |
| 1959 to 1961 | 64 years of age |
| On and after 1962 | 65 years of age |
you can still retire at the age of 61 years (known as the early-opt-out) if:
| born between 1952 and 1961 | you would have paid 1820 contributions (including credits, if any) and not gainfully occupied up to the state pension age |
| born between 1962 and 1968 | you would have 2080 contributions and terminated work |
| born on and after 1969 | you would have 2132 contributions and terminated work |
Hence, work can then be resumed, if desired, at pension age as per table above.
However, many remain active in the labour market.
For some years now, the Government has been promoting active ageing through its many budgetary incentives to encourage those reaching their pensionable age, to remain in employment. Research has shown that remaining active in employment helps you to remain:
- socially interactive as well as
- financially stable
whilst contributing to the economy in general. Thus, the benefits are twofold: personally (tab (1)) as well as for the economy (tab (2)).
Research shows that remaining active in employment helps you economically since earning an income is, most probably, higher than the pension income you would receive at 61 years of age. Furthermore, work provides you with greater opportunities to socialise and to put your ideas and knowledge to use.
From a national economic perspective your continuing to be in employment results in greater national productivity and further valued added contribution due to the experience and institutional memory you hold.
Working beyond 61 years of age, if you are able and wish to do so
To encourage you not to retire early before your retirement age the government has introduced a scheme that allows you to receive a higher pension for every year you remain in employment up to 65 years of age.
The Pensions % Increase measure came into effect in 2016, for so called delayed retirees working in private entities, who would have had enough contributions to benefit from the early-opt-out and retire at 61 but would have chosen to continue working and retire at their proper pension age as per new pensions reform — table above.
With effect from January 2019, public service employees working in the public sector, who would have had enough contributions, as per table above, to draw a pension at 61 years of age but chose to continue working, were, with effect from January 2019 eligible for a percentage increase to their pension rate, just like private sector employees.
As from Year 2020, public sector and public service employees who retired during and after 2016 and delayed their pension but did not benefit from the percentage increase measure, will have their pension rate revised. The original pension rate will be increased with the deferral percentage rate due and a new revised rate of pension will be issued as from 2020.
The % increase rates
The % increase, added to the weekly pension rate, is awarded as described in table below, and calculated upon the pension rate. Thus, for many, their weekly pension rate would exceed the maximum weekly pension.
The Table below shows the impact this scheme will have on your pension income should you partake in it.
| Age at Retirement | Increase | |
| 61 Years | 0% | |
| 62 Years | 5% | |
| 63 Years | 10.5% | |
| 64 Years | 16.5% | |
| 65 Years | 23% |