Malta Pension System 2026: State Pension Guide

Retirement Age

Retirement age in Malta depends on your year of birth:

• Born before 1952: 61 years (60 for women)
• Born 1952-1955: 62 years
• Born 1956-1958: 63 years
• Born 1959-1961: 64 years
• Born 1962 onwards: 65 years

Contribution Requirements

To qualify for a contributory pension you need:

• Minimum 10 years (520 weeks) of paid contributions for a reduced, pro-rata pension. If you were born from 1962 you also need 12 years in total, of which up to 2 can be credited
• For the full two-thirds pension: 30 years (born before 1952), 35 years (born 1952-1961), 40 years (born 1962-1968), 41 years (born 1969-1975) or 42 years (born 1976 or later)
• Contributions from employment, self-employment, or credits

How Pension is Calculated

The two-thirds pension is based on:

• Born before 1962: average of your best 3 consecutive years in the last 10 (11, 12 or 13 if you retire at 62, 63 or 64)
• Born from 1962: average of your best 10 calendar years in the last 40
• Subject to a maximum pensionable income (2026: €25,500 if born before 1962, €29,083.36 if born from 1962)
• Pro-rata reduction if your yearly average of contributions is below 50 (total weekly contributions divided by your required years, so about 40.4 full years are enough when 42 are required)

The maximum pension in 2026 is therefore about €19,389 a year (€373 a week) if you were born from 1962, and €17,000 a year (€327 a week) if you were born before 1962.

Contribution Credits

• Child-rearing credits (born from 1962): 4 years for each of the first 3 children; 2 years from the 4th child if you return to work for at least as long. Doubled for a child with a disability. From 2026, credits for the first three children run to the child's 10th year
• Born 1952-1961: 2 years per child for the first 3 children, 1 year from the 4th
• Study credits: credited weeks for each year of full-time study, e.g. 26 weeks a year at MQF level 6-7 and 52 weeks a year at level 8 (born from 1962)
• From 2026 you can pay up to 5 years of missing contributions to reach the 10-year minimum, even if you are no longer working

Retiring at 61 or Deferring

With the full number of paid contribution years for your birth year you can retire from age 61, provided you do not work until your statutory pension age. The pension is not reduced. If you qualify but wait, the pension is increased for life:

• Claim at 62: +6.5%
• Claim at 63: +13.5%
• Claim at 64: +21%
• Claim at 65: +29%

There is no extra increase for claiming after age 65.

Tax on Pensions and Private Pensions

• From basis year 2026, the total pension income of people aged 61+ (state, service, occupational, private and foreign) is 100% tax-exempt up to €37,104 a year (LN 53 of 2026). Other income, such as a salary, is taxed normally
• The old pensioners' tax rebate ended for income after 31 December 2025
• Personal Retirement Scheme: 25% tax credit on contributions up to €3,000 (max €750 a year). Voluntary occupational pension schemes get a separate 25% credit, also capped at €750 for the employee

What Changed in 2026

• All retirement, invalidity, widow's and age pensions rose by €10 per week (€4.66 COLA plus €5.34)
• People born from 1976 need 42 years of contributions for a full pension (previously 41)
• The maximum pensionable income rose to €29,083.36 (born from 1962) and €25,500 (born before 1962)
• Pension income of people aged 61+ is now fully exempt from income tax up to a cap of about €37,104 a year (it was 80% exempt in 2025)

What to Watch in Budget 2027

Budget 2027 is presented on 26 October 2026. The government has already ruled out raising the pension age or contribution rates, but expect a new weekly pension increase plus COLA, a higher maximum pensionable income for those born before 1962 (to be equalised by 2028), a uniform €21.53 weekly cost-of-living bonus for all pensioners and a reform of widows' pensions. We will update this guide once the measures are published.