Prime Minister Robert Abela said the government is studying possible changes to pension rules affecting people born from 1962 onwards, while insisting that any reform must remain financially sustainable and acceptable to the European Commission.

The issue was raised on Tuesday by The Malta Independent, noting that individuals born from 1962 onwards who have paid 40 years of social security contributions can currently retire with a pension at 61, but are prohibited from taking up any form of gainful employment until they reach the statutory retirement age of 65. If they do, they have to forfeit the pension. People at 61 who postpone their retirement have the incentive of getting a staggered increase in their pension, year after year, until they get the maximum allowed as from 65 years. The Malta Independent asked whether Labour was prepared to revise the policy.

In his reply, Abela criticised reforms introduced by the Nationalist administration in 2006, arguing that they created two categories of pensioners and led to discrimination between people born before and after 1962. He said the reforms had been introduced because the pension system was considered unsustainable at the time.

Abela said his government had already begun addressing what he described as an injustice through recent budgets, allocating tens of millions of euros to narrow the gap between different categories of pensioners. He pledged that, if re-elected, Labour would complete reforms aimed at fully eliminating the disparity by 2028.

Turning to the specific question on allowing early retirees to remain employed, the Prime Minister acknowledged that the government had already explored the proposal. However, he warned that permitting people to retire at 61 and getting a pension while continuing to work could effectively amount to lowering the retirement age.

Abela said the government had already received indications from the European Commission that such a move could create difficulties. He stressed that the administration did not want to introduce measures that might later be blocked or reversed.

"We are looking at alternatives that would not create that de facto effect, but which could still address the reality you are mentioning," Abela said.

He added that discussions are ongoing between officials responsible for pensions, the Ministry for Social Policy, and financial authorities to identify solutions that are both financially viable and capable of securing the approval of the European Commission.

Abela also contrasted what he described as Labour's "credible" approach with what he characterised as easy promises by the Opposition, saying the government was focused on measures that are fully costed and sustainable in the long term.

Asked separately whether he was surprised by Conrad Borg Manche's decision to contest the election with the Nationalist Party, Abela avoided directly criticising the candidate and instead wished all election candidates well.

The Prime Minister said he was "very proud" of the Labour Party's electoral team, highlighting what he described as a mix of young candidates, experienced politicians, and newcomers from different professional sectors.

Abela said Labour's team offered the "stability", "competence" and expertise needed to continue leading the country and implementing its electoral programme. He argued that the Labour Party remained the only political force with the credibility and capability to continue driving Malta's economy forward.