Malta, like many other countries is facing challenges due to its aging population and this is increasing the burden on the state pension system. Starting a private pension plan is becoming increasingly important to secure an adequate standard of living after retirement.
Private pension plans might offer tax rebates and financial security without affecting the state pension. Various companies provide options tailored to the individuals’ incomes and risk tolerance. Access to funds begins between ages 61 and 70, where up to 30% of the accumulated pension funds can be taken as a lump sum, providing an initial financial cushion, while the remainder is paid out as a regular pension income. Individuals who opt for a private pension may also be eligible for a 25% tax rebate, up to €750, on the amount being saved per year.
The government is fully endorsing private pension schemes. The government believes that we need to reach a point where every worker is automatically enrolled in a private pension scheme, though employees will have the option to opt-out.
- The government is endorsing Third pillar pensions.
- Malta’s aging population is increasing the burden on state pensions.
- Inflation and the rise in the cost of living worry retirees.
- Private pension plans do not affect state pension eligibility.
- Different companies offer plans in accordance to your needs and risk tolerance.
- Different companies may have different charges.
- Get a 25% tax rebate, up to €750 per year.
- Access to funds begins at ages 61-70 and individuals can have up to 30% lump sum, and the rest provided as a pension.
- Secure your future, improve the quality of life after retirement.
- Start early for better results!