Age Benefit


Our age Benefit provides persons with meaningful financial support at retirement.

NORMAL PENSION AGE

This refers to the age at which you receive your NIS pension. The normal pension age will increase gradually from 60 to 65, over a 15 year period as follows:

TIME PERIOD AGE AT WHICH YOU RECEIVE PENSION
 2014 to 2015 60
 2016 to 2018 61
 2019 to 2021 62
 2022 to 2024 63
 2025 to 2027 64
 2028 and onwards 65
YEAR OF BIRTH PENSIONABLE AGE
 1955 and before 60
 1956 – 1957 61
 1958 – 1959 62
 1960 – 1961 63
 1962 – 1963 64
 1964 and after 65

 

EARLY PENSION AGE

An individual may receive his/her pension as early as age 60. However, the pension would be reduced by 6% for each year you retire before the normal pensionable age.

FOR EXAMPLE

If your pensionable age is 65 and you retire at 64,your pension will be reduced by 6% (12*0.5%). This is because you retire 12 months before pensionable age.

WEEKS REQUIRED FOR FULL PENSION ELIGIBILITY

The minimum required weeks of contribution will gradually increase from 500 weeks (10 years) to 750 weeks (15 years) as follows:

TIME PERIOD MINIMUM REQUIRED WEEKS
 2014 to 2015  500
 2016 to 2018  550
 2019 to 2021  600
 2022 to 2024  650
 2025 to 2027  700
 2028 and onwards  750

 

An example of current Pension calculation

Best 5 years salary over career/5 = Average Annual Insurable Earnings
Weekly rate = Average Annual Insurable x (30 to 60%)/No. of weeks in the year
Monthly pension = Weekly rate x no. of weeks in the month

YEARS ANNUAL SALARY WEEKLY CONTRIBUTIONS
1997 12,480.00 52
1998 12,480.00 52
1999 12,480.00 52
2000 18,720.00 52
2001 18,720.00 52
2002 18,720.00 52
2003 18,720.00 52
2004 18,720.00 52
2005 18,720.00 52
2006 18,720.00 52

Best 5 years = $18,720 + $18,720 + $18,720 + $18,720 + $18,720
Average = $93,600/5 = $18,720
Weekly Pension at 30% = $18,720/52 x 30% = $108

Weekly pension = $108.00 (to the nearest multiple of 10)
Monthly pension = $108.00 x 4 = $432.00

Please note the following:
  1. The current minimum weekly rate of a pension is $70.00.
  2. Pension is currently calculated on the best three in the last 15 years.
  3. A full pension starts from 30 to 60%.
  4. This rate is increased by 1% for every 50 contribution weeks over the minimum qualifying weeks.
  5. The insurable earnings limit is $4,333 monthly thus the maximum salary that qualifies for pension is $4,333 per month or $1,000 per week.
  6. A claim for age pension should be submitted within three (3) months of the claimant’s retirement age.
  7. Pension is paid in multiples of the nearest ten cents.

 

AGE GRANT

If persons are not qualified for the Age Pension, then they can receive a lump sum payment called an Age Grant, if they have paid at least 50 weekly contributions. A lump sum of six (6) times the average weekly wages for each 50 weekly contributions will be paid.

REDUCED AGE PENSION

Insured persons can qualify for a reduced pension between 2016 and 2027. The conditions for qualification:

  1. Insured person must attain pensionable age.
  2. Paid or credited at least with 500 weekly contributions but less than the minimum qualifying weekly contribution

 

Formula:

The reduced pension shall be the old age pension at the pensionable age multiplied by the weekly contribution paid or credited and divided by the applicable qualifying number of weekly pensions in that year.

An Example:

A person who attained the pensionable age of 63 in 2022 but has only 550 contributions would receive a pension that is proportionately reduced:
550/650 x 30%x Average Wages.
650 is used because it’s the minimum qualifying weeks for a pension in 2022.

REFUND OF CONTRIBUTIONS TO CERTAIN ELDERLY PERSONS

An insured person who has attained NIS pensionable age and has paid:

  1. 26 to 49 contributions may be refunded that element of contributions which represents invalidity, age and survivors benefit. In other words, they will receive 2.29% of their earnings.
  2. Persons with less than 26 contributions may be refunded the contributions actually paid by him/her.

 

WHEN TO CLAIM

A claim for Age Benefit should be submitted within 3 months of attaining the NIS pensionable age. The claim must be accompanied by a birth certificate or passport.