Private pensions schemes are available in Malta. In 2015 the Malta Financial Services Authority (MFSA) introduced a regulatory framework for the provision of private pension retirement products in Malta. Private retirement pension products are governed by a number of rules which are established by the MFSA.
The full rules can be found in the document titled ‘Pension Rules for Personal Retirement Schemes issued in terms of the Retirement Pensions Act, 2011’ which can be found here. (https://www.mfsa.com.mt/pages/viewcontent.aspx?id=599).
The following is a summary of the key rules established by MFSA for private pension retirement products:
- You can access your savings in your private pension retirement scheme between the age of 50 and 75 years.
- Your savings in your private pension retirement scheme must be invested in a ‘prudent’ manner and in your ‘best interest’.
- Your savings in your private pension retirement scheme can only be accessed before the age of 50 years only in the event of a permanent disability or by your successors in the event of your death.
- You can access your savings in your private pension retirement scheme as follows:
- You may choose to take up to 30% of your savings in cash lump sum. This lump sum is tax free.
- You will receive the remaining 70% of your savings by means of a programmed withdrawals either as an annuity or by drawing down your savings on the basis of sound and prudent principles or a combination of both. This income is subject to taxation.