No increases in retirement age or social security contributions, minister says

Reactions to pensions strategic report being considered

The retirement age and the rate of social security contributions will not be raised, Social Welfare Minister Michael Falzon said on Tuesday.

He gave his assurance in the wake of the conclusion of a public consultation on the Pensions Strategic Report 2025, which was tabled in Parliament last December.

The minister said that the government will continue to strengthen pensions through a series of measures planned over the course of the current legislature, starting from the next Budget.

Those measures will include a  €50 weekly increase in pensions to be phased in over the legislature; an adjustment to widows’ pensions, which from next year will match the pension the spouse would have received had they still been alive; a Cost of Living bonus that will become equal for everyone starting next year amd a raise in the Maximum Pensionable Income, which by 2028 will be standardised for all, regardless of date of birth.

Falzon said that 14 submissions were received during the public consultation process—six from organisations, two from private companies, and six from individuals.

The feedback was reviewed by the Pensions Strategic Group, led by Permanent Secretary Mark Musu, which is currently finalising its recommendations to government. These recommendations do not include any increase in the retirement age or social security contributions.

 

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