When Should you Start a Personal Pension Plan in Malta?

Achieving financial security in your retirement age does not happen by chance; it requires careful planning, and, indeed, financial resources. Ensuring a comfortable and worry-free retirement is a goal that requires thoughtful consideration, timely action, and the right financial partner. Although your retirement date may be far off, it is never too early to start saving.

For residents in Malta, the APS Personal Pension Plan offers a smart and hassle-free way to build a retirement pot to provide the extra income that will help you enjoy your retirement years to the fullest.

This article will guide you through the process of preparing for your retirement, including understanding your retirement needs, picking the right pension scheme, setting financial goals, and considering key factors that will impact your pension planning. We will also explore how APS Bank can assist you in achieving your retirement goals. So, let’s dive right in!

How to Prepare for Your Retirement

To help you prepare for your retirement years effectively, consider the following steps and factors as you embark on your retirement planning journey.

• Save up and stick to your goals: building a substantial retirement fund requires discipline. Make regular contributions to your personal pension plan and stick to your savings goals. Even small, consistent contributions can add up significantly over time. The earlier you start, the easier it is.
• Recognise your retirement needs: consider your lifestyle goals for retirement. Do you want to travel, pursue hobbies, or maintain your current standard of living? Understanding your retirement needs will help you set savings targets.
• Don’t just rely on your employer’s retirement savings plan: while an occupational pension scheme can be a valuable asset, it may not be enough to cover all of your retirement expenses. Consider supplementing this with a personal retirement scheme like the APS Personal Pension Plan.

How Much Do You Need to Save for Retirement?

The amount you need to save for retirement depends on various factors, including your current age, expected retirement age, life expectancy, desired retirement lifestyle, and other financial commitments. To get a clear picture of your overall retirement savings goal, consider working with a financial advisor who will help you create a personalised retirement plan.

Important Factors to Consider

• Time horizon: the longer you have until retirement, the more time your investments have to grow. Starting early allows you to save less each month while achieving your retirement goals. If you target a €100,000 pot on retirement, at the age of 20 it will cost you €100 per month, while at the age of 50 it will cost you €500 per month.  
• Retirement spending needs: estimate your future expenses and lifestyle. Consider factors like housing, healthcare, leisure activities, and travel. This will help you determine your retirement income requirements.
• Risk tolerance: Your willingness to accept investment risk can impact your retirement savings strategy. Riskier investments may offer higher returns but come with greater volatility. Your financial advisor will help you with this decision but timeframe is a very important part of the risk tolerance decision. 

How Can APS Bank Help?

At APS Bank we recognise the importance of retirement planning and offer a flexible personal pension plan to help you secure your financial future. Here is how we can assist you:

• Top up your pension: with the rising cost of living and changing economic landscapes, relying solely on your state pension may not be sufficient. By supplementing your state pension with your own personal pension plan, you take control of your future and the quality of life you desire in retirement.
• Tax benefits: through the APS Personal Pension Plan, you can benefit from a tax rebate of 25% of your annual contributions, up to €750 per year. This means that if you contribute €3,000 to your plan, you’ll receive a €750 tax rebate.
• Expert guidance: we understand the importance of planning ahead to avoid financial burdens in the future. At APS Bank, our experts provide advice and support from the beginning and all across your pension savings journey, ensuring you are on the right path to securing financial security throughout your retirement.
• Flexible options: you can change, increase or stop premiums anytime without penalties or conditions. Life is full of surprises, and our policy has been designed to adapt to your needs.
• Transparency: each pension holder will have access to a dedicated online portal which will contain personalised information and up to date valuations of your personal pension plan.

Don’t wait until it is too late to start saving for your retirement. Begin today, secure your financial future, and enjoy peace of mind knowing that you have taken the necessary steps to retire comfortably. APS Bank is here to support you every step of the way on your retirement planning journey.

Start Planning Your Retirement with APS Bank

If you are ready to start planning for your retirement, visit our website and learn more about the APS Personal Pension Plan. Alternatively, fill in the form below to get in touch today and explore how we can help you achieve your retirement goals. Your future financial security starts here.

Approved and Issued by APS Bank plc, APS Centre, Tower Street, B’Kara BKR4012. APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994 and to carry out Investment Services activities under the Investment Services Act 1994. The APS Personal Pension Plan is licensed and regulated as a personal retirement scheme by the Malta Financial Services Authority in terms of the Retirement Pensions Act (Chapter 514 of the Laws of Malta). Terms and Conditions apply and are available upon request.