Retirement may seem like a far-off concept for many, but if buying a lottery ticket is your only form of pension planning, think again as right now the most you will get from a State pension is just under €1,300 a month.
And while it may feature far down your priority list, the absence of a secure pot today will drastically impact your ability to enjoy the retirement you had envisaged over the years of hard work.
GlobalCapital Life Insurance Ltd, which has been present in Malta for more than 50 years, is on a mission to persuade individual and corporate clients to invest in the future of their workforce and encourage young people to start putting aside a little pot of security from now onwards.
Prof. Paolo Catalfamo GlobalCapital plc chairman, believes that while it has always been important to save to supplement government pensions, now is the most opportune moment to invest, thanks to the favourable legislation allowing any contributor to benefit from 25 per cent of the yearly contributions (resulting in a maximum tax credit of €500 per person).
“It is important to act now as the legislation may change in the future. If we had to consider the cost of inflation over the years, you’ll find that if €1 can buy you so much today, in 20 years’ time it will only cover 70c worth of goods,” Prof. Catalfamo says.
“People are starting to realise that the State pension will not cover the gap between their salary and the amount they get. Our advice is to start saving for a private pension as early as possible.”
As one of the leaders for product innovation in Malta, GlobalCapital Life is introducing Pension Plus for the individual clients and Pension Pro for the corporate clients to help you bridge the gap and ensure you can maintain a comfortable lifestyle during retirement.
Over a 40-year span, if you contribute as little as €100 a month you can accumulate as much as €111,030, which means an additional income of €771 at retirement (based on an average of five per cent annualised return)*.
Apart from having your investment managed by professionals, you can receive a 30 per cent tax-free lump sum at retirement, with the remaining balance provided as a retirement income.
There is also the advantage of receiving financial protection in case of death when the fixed insured sum plus the accumulated policy value will be passed on to your designated beneficiary after death.
Most importantly, you get flexibility on the amount you want to contribute and which policy to choose. And, while not recommended, payments can also be stopped and restarted at any time — a premium holiday — as long as the age of the contributor is between 18-60 years.
With a portfolio of life insurance policies boasting an annual gross premium written in excess of €12 million, and total assets under management reaching €148 million, the Company has a strong team of over 120 dedicated professionals to offer you a tailor-made package.
Putting off saving to later in life rarely outperforms earlier savings so don’t leave it too late to seek financial help. Most live 20 years on a pension, will yours be enough?
For more information regarding pension solutions, contact GlobalCapital Life Insurance on 2134 2342, send an e-mail to info@globalcapital.com.mt or view more details on www.globalcapital.com.mt.
*The performance figures quoted should only be considered as forecasts and are not a reliable indicator of future performance. Your decision should be based on the full details of the Key Information Document, which can be provided upon request or from www.globalcapital.com.mt. GlobalCapital Life Insurance Ltd is authorized by the Malta Financial Services Authority to carry on long term business of insurance under the Insurance Business Act, Cap 403 of the Laws of Malta.