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Start saving for your retirement with a Personal Pension Plan which offers you flexibility and tax benefits.
From just €40 a month, you can create your own personal pension fund. This will supplement your state pension when you retire, helping you to maintain your lifestyle when you stop working.
Under current Maltese legislation, you may benefit from a tax credit for your personal pension savings. The current available tax credit is equal to 25% of the amount you save each year, up to a maximum of €750. Therefore, you may save €3,000 per year to maximise the plan’s tax efficiency. Of course, you may choose to save more in order to grow your retirement fund.
You can start receiving your personal pension income between the ages of 61 and 70. At this time, you can choose to receive up to 30% of your fund as a tax-free lump sum. Your fund balance must then be used to provide you with a regular pension income.
This plan is very flexible. If your circumstances change in future, you can change the amount you save, as long as you cover the minimum of €40 per month. Otherwise, you may take a break from saving altogether, up to a maximum of 5 years. These changes will however have an impact on your expected fund at retirement.
Are you an employer, looking to provide additional benefits to your employees? Check out the Voluntary Occupational Pension Scheme product.
The investment options and mechanics are the same as those offered under the Savings Plan.
The first option is to invest your funds into the MAPFRE MSV Life With-Profits fund, which offers benefits such as a capital guarantee and tax-efficient returns. Under this option, you will receive a bonus each year, which depends on the returns generated by the fund. Your bonuses compound on a yearly basis. This means that your bonus each year will be calculated as a percentage of your savings fund, including any past bonuses declared. The fund also aims to smoothen out yearly investment returns by offering policyholders steady annual returns. The fund then holds surplus earnings in a cash reserve to make good for difficult future years.
The second option is to take full control of your investments via certain unit-linked funds which you may choose from. This option may offer you potentially greater annual returns. However, it will not offer you the same security as the With-Profits fund.
If you are interested in learning more about the Personal Pension Plan, please contact us for an appointment. We will be delighted to explain the product further, and also give you an idea of what you may expect to receive on your retirement, based on your savings.
The Key Features Document gives you a better understanding of the key features of this plan. It also answers some frequently asked questions and provides a clear description of benefits. This KFD relates to the ‘With-Profits’ product.