You may hope your retirement is full of lavish holidays, fun-filled time with family, or projects that make you happy – but are you going to save enough to make that happen? A personal pension plan could help you achieve your financial goals in retirement, as APS Bank’s Head of Investments Distribution Kenneth Genovese explains.
What exactly is a personal pension?
A personal pension helps you save money for your retirement. It tops up your state pension, which may not be enough to enjoy those coveted retirement years in the manner you’ve been dreaming about. Every time you make a contribution to your pension plan, your investment grows, and this helps you establish a consistent, regular income for when you retire. The amount of the payout received will depend on the amount invested and the performance of the investments over the long term. The APS Personal Pension Plans has different investment options, and our pension specialists can guide you on the best choices according to your individual circumstances.
Traditionally, very few people in Malta have prioritised getting a personal pension. Why should they start now?
There are a number of very good reasons. The first is that a private pension makes good tax sense, and currently rewards you with a rebate of 25 per cent per year up to a maximum of €500. Secondly, it effectively tops up your state pension, which, on its own, may not afford you the lifestyle you’re looking forward to in retirement. Finally, getting a private pension will help to compound your savings over time, and to grow them so you can look forward to them being worth a lot more than they are now.
This sounds like something everyone should do. What stops people from getting a personal pension?
In a nutshell, no one wants to think about getting older – so they just put it off. We tend to focus on what we want to do today and would rather spend our money now than invest it in something that will help us to live better in the future. We also think the state will take care of us when we’re older and, while there may be a state pension in the future, it probably won’t be enough to help you live the way you want to. For instance, the maximum state pension today gives you less than €1,000 per month. But if you earn more money with your current job, you will definitely feel the difference in your way of living when you start relying on your lower pension income. An APS Personal Pension Plan will allow you to plan for that and enable you to have the retirement you’ve dreamed of – and worked for – your whole life.
As an individual, where should I start building up my personal pension?
You can start with as little as €50 per month to begin to grow your pension pot for the future. It doesn’t have to be huge amounts month-on-month. We also offer flexibility to increase or decrease your premiums in line with one’s circumstances, while also offering the option to stop for a period if necessary. In fact, at the moment, €2,000 per year is ideal because it enables you to take maximum advantage of the tax benefits currently being offered.
You can start with as little as €50 per month to begin to grow your pension pot for the future
As you start to pay in, you’ll have a range of investment strategies to choose from and will always have online access to your pension plan portal. Then, when your retirement does roll around, you can choose between receiving your pension as a tax-free lump sum with a monthly income, or simply as a monthly income.
Besides personal pension plans, is there something an employer can do to help take care of their employees once they retire?
Yes, and there are a number of noteworthy benefits. By offering the APS Occupational Pension Scheme, you’ll introduce a system that is beneficial to both you and your team. It also highlights your commitment to your employees by investing in their future, which helps position you as an employer of choice. In short, companies offering staff pension schemes have a real advantage over those that don’t.
Why should I choose APS Bank as my pension provider?
Pensions are a long-term business, and when choosing your pension provider, the most important thing is the reliability and reputation of the provider. APS Bank has been in existence for over 100 years, having started as a savings bank in 1910, and from that time has grown to one of the main banking institutions in Malta. The bank is fully owned by Maltese shareholders and we pride ourselves as being the leading community bank in Malta. If you set up your pension with us, you’ll receive expert advice from the get-go and know that our goal is the best possible outcome for you.
What makes APS’ pension products stand out?
We believe it is the combination of our trusted reputation and the complete flexibility of our pensions product that really set it apart. You can start saving as soon as you like, stop your premiums if money gets tight for a while, and then start them again when it suits you. You’ll also have a range of investment options to choose from, depending on whether you want your portfolio to be high, medium or low risk, or possibly opt for an ethical option. It’s a product that fits your lifestyle today while helping you prepare for good times tomorrow.
How do I get started on an APS pension plan?
Get in touch. Our expert team looks forward to talking you through your options and identifying the right investments to grow your pension pot for a future you can look forward to.
To learn more about the APS Pensions visit apsbank.com.mt/personal-pension and apsbank.com.mt/occupational-pension or call 2122 6644.
The information in this article is general background information and should not be interpreted as financial, legal or tax advice.