Retirement Planning

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Retirement Planning

It is never too early or too late to plan ahead and invest in your future so that you can enjoy the retirement you deserve. The investment choices people make over the years will determine the lifestyle they will be able to lead when they retire. Whatever stage in life you are in, we can help you make the right investment choices via a range of investment solutions.

If you would like to get in touch and find out more on how you can start to plan ahead for your future, you can either call +356 25 688 688 and ask for one of our Financial Advisors or visit one of our offices.

Private Pension Schemes

The Private Pension Scheme is a long-term savings scheme designed to help you save for your retirement by building a pot of money to be invested which will provide you with an income throughout your retirement.

The Lifetime Scheme was launched in-line with recently introduced pension legislation which offers a tax incentive of up to €500 per annum for individuals who contribute €2000 towards their retirement. The Lifetime Private Pension Scheme is an approved Personal Retirement Scheme authorised by the MFSA.

Any information provided about taxation is based on our understanding of current law and legislation. Future changes in law and taxation, or your own financial circumstances, could affect the treatment of the plan and the amount of tax payable. In order to ascertain your exact tax status, you should seek specific and professional tax advice in relation to your tax obligations under the Lifetime Pension Schemes.

What does the scheme invest in?

Contributions are initially invested through the portfolio services of Calamatta Cuschieri Investment Management Ltd., however, these will be diversified to avoid the accumulation of risks in the portfolio as a whole.

Calamatta Cuschieri Investment Management Limited is licensed under Category 2 of the Investment Services Act by the MFSA.

Main benefits:

  • Tax rebate: For calendar year 2020 the tax rebate will be equivalent to 25% with a maximum total of €500. This is on condition that you are at least 18 years old, and that you are domiciled and/or tax resident in Malta. You are also eligible to a Tax rebate when making contributions on behalf of your spouse
  • Retirement: Choose to retire between the age of 50 and 75
  • Retirement income: Income will be paid from the fund.
  • Tax efficient solution: Enjoy tax free growth throughout the lifetime of your pension.
  • Low cost: We offer solutions for the best price on the market.
  • Save: There is no limit on the amount that can be contributed to your private pension scheme, however we recommend that you only contribute the maximum allowance per annum to take advantage of the tax rebate that is applied to the scheme.
  • 30% tax free lump sum: You will be eligible to take a 30% tax free lump sum, with the remaining balance providing yourself with an income throughout your retirement
  • Management: Your pension pot will be managed conservatively by experienced professionals.
  • Beneficiaries: Pass on your pension pot to loved ones upon your death.

 

Occupational Pension Schemes

The Lifetime Occupational Pension Scheme has been set up to manage pension schemes on behalf of employers that wish to take advantage of the recently announced pension legislation. The scheme can be set up regardless of the number of employees that will be within the scheme whether it’s 5 or 500.

According to legislation, employer’s taxable income is reduced on the amounts contributed, with current discounted rates standing at a maximum of €2000 per employee per year, while they may also receive a tax credit of 25% for every contribution paid on behalf of an employee. On the other hand, employees are also set to benefit from a tax credit of 25% for every contribution that is paid into the pension scheme.

Any information provided about taxation is based on our understanding of current law and legislation. Future changes in law and taxation, or your own financial circumstances, could affect the treatment of the plan and the amount of tax payable. In order to ascertain your exact tax status, you should seek specific and professional tax advice in relation to your tax obligations under the Lifetime Pension Schemes.

What does the scheme invest in?

The Lifetime Occupational Pension Scheme is designed to help save for your retirement by building a pot of money to be invested that will provide you with an income throughout your retirement. Contributions are initially invested through the portfolio services of Calamatta Cuschieri Investment Management Ltd., however, these are then diversified to a broader selection of asset class funds depending on the strategy selected by members.

Main benefits

  • Employee Engagement and Retention: An attractive retirement package which not only gives the employer a competitive edge but is an excellent tool for staff loyalty and staff retention.
  • Tax Efficient: A number of tax benefits are available for both the employer and employee making this an attractive tax efficient plan.
  • Employer Tax Credit: A tax credit on the employer’s tax bill of €500 per employee per annum in connection with employer contributions.
  • Employee Tax Credit: A tax credit on the employee’s personal tax bill of €500 per annum in connection with employee contributions.
  • Optimising Your Retirement Portfolio: Investment strategies that maximize return and manage volatility as the members reach retirement age.
  • Fiscal Incentive: The employer’s taxable income is reduced on amounts contributed. Current discounted rates stand at a maximum of €2000 per employee per annum.
  • Professionally Managed Investment Solutions: Investments are managed at a low cost by a professional and experienced investment management team.
  • Effective Communication: We work closely with a designated official chosen by the employer to ensure smooth operational running of the contributions.
  • Regular Reporting: Reporting provided to the employer and to each employee.
  • Simple Onboarding: Efficient on-boarding process.

 

Interested to find out more on how you can start to plan ahead for your future? Call on +356 25 688 688 and ask for one of our Financial Advisors or visit one of our offices.

 

Any information provided about taxation is based on our understanding of current law and legislation. Future changes in law and taxation, or your own financial circumstances, could affect the treatment of the plan and the amount of tax payable. In order to ascertain your exact tax status, you should seek specific and professional tax advice in relation to your tax obligations under the Lifetime Pension Schemes.