Bank of Valletta, together with MAPFRE MSV life, is launching a special limited-time offer on its pension plans. During this period, customers who take up a unit-linked personal pension plan with the bank will be given a top-up of €175 when the new plan is set up and the first premium paid by the policyholder is allocated.
Pension plans offered by Bank of Valletta are truly affordable, as Tonia Parascandalo from Business Generation at BOV Wealth Management explained that the pension plans offered by BOV are affordable, saying that customers may take up a pension plan with “as little as €40 monthly”.
In addition, policyholders are free to make changes in their contribution at any time, while contribution breaks are also allowed.
“The minimum contribution is low, so more people are encouraged to start saving for their retirement. The earlier one plans for this critical time in life, the more they will benefit later,” she said.
Moreover, in taking up a personal pension plan, a customer becomes eligible to benefit from tax credits provided by the government. Presently, the tax credit is 25 per cent of the contributions made by the qualifying policyholder in a given year, up to a maximum tax credit of €750 per person annually. In addition, at retirement, one may choose to receive up to 30 per cent of the fund value tax free. The remaining balance may be used by the policyholder as an additional regular income.
The bank offers personal pension plans that are either ‘With Profits’ or ‘Unit Linked’. The ‘With Profits’ pension plans offer capital protection, while enabling the policyholder to benefit from regular bonuses that are distributed and added to the policy annually. In the case of the Unit Linked plans, it is the policyholder who links the value of contributions to a number of funds in which s/he wants to invest. The value of the policy will fluctuate over the years according to the market and the underlying assets.
As a policyholder, one may choose to invest in as many as 10 funds concurrently
Speaking about the options available, Parascandalo said: “As a policyholder, one may choose to invest in as many as 10 funds concurrently. Furthermore, one may opt to switch between funds at any point in time, with the first two switches in any year free of charge.”
She went on to explain that more and more people are realising the importance of supplementing the standard pension with a retirement pension.
“The Unit Linked type of pension plans are ideal tools, geared for capital growth and appreciation over time,” she said.
The Unit Linked Pension Plans give the policyholder access to a broad spectrum of funds, some of which are specifically geared for retirement planning. For example, they may be linked to the bank’s suite of Portfolio Funds and Lifestyle Funds offered by Fidelity Investments.
These funds cater for any type of risk appetite, be it cautious, balanced or the more aggressive. They offer the flexibility of combining or switching from one type to another, according to the customer’s risk appetite or personal circumstances.
Anyone interested in learning more about the bank’s suite of pension plans may set up an appointment with their BOV branch of choice by visiting https://www.bov.com/Content/insurance—-retirement-planning, by sending an e-mail on bancassurance@bov.com or by calling on 2275 1627.