‘Healthier lifestyles and advances in medicine are main factors in increased life expectancy. The downside is that most of us will work for longer years with the retirement age constantly on the increase.’ This was stated by Mario Farrugia, Head Bancassurance Office at Bank of Valletta during a Business Breakfast for HR exectives held at the Offices of 21Law in Naxxar.
‘Maintaining the pre-retirement lifestyle past one’s retirement age requires careful financial planning, idea at an early stage’ continued Mr Farrugia. ‘This is why it may be the right time to consider seeking professional advice on investing in a private pension, or as is also known, a third pillar pension scheme. Bank of Valletta and Mapfre MSV Life offer private and workplace pension schemes which are intended to address any predicted shortfalls upon retirement.
Mr Farrugia proceeded to outline tax incentives towards employers who opt to invest in a voluntary workplace pension for their employees as well as personal pension plans as announced by the Minister of Finance during the last budget speech. To incentivise Maltese residents into going for a private pension, the Government had launched an incentive whereby investing in a private pension will allow you to save tax. In fact, when opting for a Personal Retirement Scheme, Maltese resident tax payers are able to obtain a tax credit against income tax chargeable in Malta. This is applicable on any contributions made by a person to any personal retirement scheme or premiums paid in respect of a qualifying policy of insurance.