Around 3,200 women to receive pensions for first time

Around 3,200 women will receive a pension for the first time through a measure introduced in the 2027 Budget.

The measure, announced by Finance Minister Clyde Caruana on Monday, represents an investment of €13 million.

Social Policy Minister Michael Falzon provided further details on the measure during a press conference on Tuesday.

Falzon said the budget builds on government's policies since 2013, during which it has consistently supported families, pensioners, persons with disabilities, and those requiring additional assistance.

How it will work

Under the new measure, up to 260 social security contributions, equivalent to five years, can be transferred between spouses, civil union partners, and registered cohabitants who meet the eligibility criteria.

The transfer will allow individuals who previously lacked sufficient contributions to reach the 10-year threshold required to qualify for a pension.

In cases where the required 520 contributions are still not reached, the transferred contributions will be taken into account when calculating the Deficiency Contributory Bonus (DCB).

The DCB is an annual grant awarded to individuals who do not have enough contributions to qualify for a pension. The transfer of contributions could therefore increase the amount they receive.

Eligible individuals will not need to apply for the measure, as they will be notified directly by the Department of Social Security.

COLA, pension increases, and widows

Falzon also highlighted that pensioners will receive an additional €10 per week from January, including the Cost-of-Living Adjustment (COLA).

He reiterated government's commitment to increasing weekly pensions by €50 by the end of the Labour Party's current legislature.

The annual tax-exempt pension income threshold will also rise by €520 to €37,624.

Meanwhile, Falzon said the process of allowing widows to receive their deceased partners' full pensions is nearing completion, with more than 7,000 people set to benefit.

Widows will also be able to transfer their deceased partners' social security contributions to increase their own pensions.

“Today, pensioners are talking about the additional benefits they have received, with some even receiving a pension for the first time, thanks to the courageous decisions we have taken,” Falzon said.

“What a contrast to the 22 years of frozen pensions under previous administrations, during which time the pension did not increase by even a single cent.”