Budget 2024: Pensions increase by €780 per year

Government will be raising pensions for the ninth year in a row, Finance Minister Clyde Caruana has announced.

Every retired person, pensioner, and those on disability benefits, as well as those who receive an age pension, will see their pensions increase by €15 per week or €780 per year.

“This is the largest increase that pensioners have ever received in a single year,” Caruana said.

He said government will improve the tax exemptions that apply to pensioners from the age of 61 and older.

This will include the exempted amounts for all the announced increases for pensioners.

Furthermore, starting from next year, the Widow's Pension will not be taxable for widows who have not yet reached the age of 61.

“In this way, we will be ensuring justice for these individuals as well,” he said.

With the continuation of the process that will now enter its third year, those who started receiving their pension in 2009 or later will receive an additional increase in their cost-of-living bonus, up to a maximum of just over €1.00 per week. In total, this improvement will benefit approximately 53,000 pensioners.

“It should be noted that if we do not act to carry out this process, the cost-of-living bonus for these individuals is currently less than €9 per week," he said.

Widows pensions

Widows pensions will be adjusted upward once again in line with an electoral pledge to bring these pensions equivalent to that of their deceased spouses by the end of the legislature.

Around 7,000 widows will benefit from the increase.

Service pension

6,000 people in receipt of a service pension will receive an increase of €200.

“Pensioners from the armed forces who have been boarded out and retired with an early service pension due to illness will begin to see the adjustment in their pension after 12 years from when they started receiving the service pension, and not when they reach the age of 72,” Caruana announced.

A new measure for service pensioners who have not yet reached the retirement age and do not work, or do not receive any social security pension will be introduced. To date, they have received no cost-of-living allowance, while those who work or receive social security pensions receive the COLA.

From next year, these individuals will start receiving an additional Cost of Living bonus equivalent to the increase in the cost of living. This bonus will continue to accumulate each year with the increase in the cost of living until the person either starts working, begins receiving any pension or social security benefit.