Why does the 2026 UK/EU Treaty in relation to Gibraltar make it possible to equalise the pensionable age at 60?
Short answer
Before the 2026 UK/EU Treaty in relation to Gibraltar, Gibraltar bore the full pension cost for many frontier workers, making early equalisation financially difficult. With Spain now sharing liability through aggregation and pro rata rules, Gibraltar’s long-term pension burden is reduced. This fiscal relief creates budgetary room to equalise the pensionable age downward to 60.
Detailed answer
Previously, lowering the pensionable age would have required Gibraltar to pay full pensions earlier and for longer, including to many Spanish frontier workers. The treaty changes this by ensuring Spain contributes for periods completed under Spanish legislation. Because Gibraltar’s share is now limited to domestic insurance periods, the projected liability decreases. That shift in cost allocation underpins the political decision to equalise at 60 rather than increasing the age to 65.