MAPFRE MSV Life plc has seen sustained demand for personal pension plans in 2021, thus consolidated its position as the leading provider of retirement savings solutions in the Maltese market last year, the company reported.
“We have written more than 2,800 new personal pension plans during 2021,” Michael Galea, chief business development officer at MAPFRE MSV life, said.
“As a result, MAPFRE MSV Life today has nearly 11,000 personal pension plan customers with aggregate pensions savings amounting to over €37 million. It is clear that more and more people are being receptive to the message that underlines the importance of saving towards retirement as can be seen from the take-up that we have registered during last year, ” Galea added.
The MAPFRE MSV Life Personal Pension Plans are qualifying schemes which, therefore, enable customers to benefit, subject to eligibility, from the tax credits made available by the government. The tax credit for 2021 was of 25 per cent applicable to a maximum contribution of €3,000 (resulting in a maximum tax credit of €750 per person). The government is continuing to incentivise voluntary pensions savings with the same level of fiscal incentives being made available for 2022.
The MAPFRE MSV Life Personal Pension Plans offer a compelling value proposition that includes some unique features. Among others, MAPFRE MSV Life offers the possibility to pensions savers to link their savings to lifestyle funds. Lifestyle funds are often utilised by investors seeking a savings vehicle for a specified utilisation date and, therefore, are often used to support retirement savings. 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 all 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.
“Future pension adequacy depends not only on how much people save and for how long. Investing in a diversified range of assets can be as important as saving enough and has a very important role in delivering adequate retirement income,” Galea said.
“It is vital that pension savers have the option to invest in a well-diversified mix of the major asset classes. That is why we advocate the importance of saving enough and of saving well. In this regard, 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.”
More information about the MAPFRE MSV Life Personal Pension Plans is available from the MAPFRE MSV Life offices in Floriana, Luqa and Birkirkara or from any MAPFRE MSV Life intermediary.