MAPFRE MSV Life (MMSV) has launched a limited time offer on all new Unit Linked Personal Pension Plans issued between June 23 and September 30. During the offer period, MMSV is making a €175 top-up to the new Unit Linked Personal Pension Plan when the policy is set up and the first premium paid by the client is allocated.
The MAPFRE MSV Life Personal Pension Plans are qualifying schemes that enable customers to benefit, subject to eligibility, from the tax credits made available by the government. The tax credit for 2022 is 25 per cent applicable to a maximum contribution of €3,000 (resulting in a maximum tax credit of €750 per person).
One of the attractive features when clients set up a MAPFRE MSV Life Unit Linked Personal Pension Plan is the possibility to link their pensions savings to lifestyle funds. Lifestyle funds are also sometimes referred to as target funds since their purpose is of serving as a vehicle for investing funds towards a specific goal. Lifestyle funds combine conservative, moderate or aggressive risk allocations for savers at different stages of their lives.
As the retirement age (target date) nears, a lifestyle fund will roll down into a more conservative mix of assets. This will happen automatically under the guidance of the fund manager without the need of any intervention by the investors in the fund. That is why lifestyle funds are often used by investors seeking a savings vehicle for a specified utilisation date, and therefore are often used to support retirement savings.
Future pensions adequacy is not just a function of saving enough but also of saving well
Michael Galea, chief business development officer of MAPFRE MSV Life, said: “Through our special offer, we aim to encourage people to start saving now for a very important life goal – that of building adequate savings to support their lifestyle when they retire.
“Our personal pension plans help you to build up a sum of money which will be used to provide a tax-free cash lump sum when you retire, as well as a regular pension income to supplement the state pension.
“At the point that a personal pension plan can be accessed, as per current rules, one will be able to take up to 30 per cent of the plan value as a tax-free lump sum, with the remaining balance being used to generate income in retirement, which would be subject to income tax at the individual’s marginal rate applicable at the time.”
Galea concluded: “One aspect that we give a lot of importance to is that of making available to pension savers the option to invest in a well-diversified mix of the major asset classes since future pensions adequacy is not just a function of saving enough but also of saving well.
“We believe that the MAPFRE MSV Life Personal Pension Plans are ideal to help people to save well towards their retirement while benefitting from the tax incentives that government makes available.”
This is a limited time offer and MAPFRE MSV Life reserves the right to close this offer earlier.
Terms and conditions apply and may be viewed at the website www.mapfre.com.mt/personal-pension-plan/.