An Expert Explains: How to save in a personal pension plan

Despite warnings about the social security pension’s ability to secure retirees a good quality of life with a maximum of around €1,000, and incentives for those who take the plunge and start saving for retirement, local take-up of private pension schemes remains low.

Many might not know how to apply for one, and with whom.

In this series of articles aimed at demystifying the world of pensions, BOV Manager within the Bancassurance Office Claire Falzon has explained what private pensions are and delved into pension adequacy.

Here, she breaks down the steps one must take to invest in a personal pension plan.

“Saving in a personal pension plan should be considered as a long term investment.

While you have to wait until retirement to access your funds, there are rules which govern how these funds may be accessed, so you need to consider the various investment options available for pension planning.

Next, you need to determine the amount you can afford to contribute on a regular basis and apply for this product with a trusted insurance intermediary. Make sure that you understand the features of the product which may be found in the Key Features Document.

Speaking to a financial advisor of your choice will also ensure that the pension plan you will be investing in is suitable to you according to your financial situation, objectives, risk tolerance and knowledge and experience.”

An Expert Explains is a BusinessNow.mt initiative to improve economic financial literacy by inviting industry leaders to explain technical terms in a manner that can be understood by a general audience. If you would like to suggest a term or concept for our network of professionals to break down, or if you are an expert willing to contribute to this column, send us a message on our Facebook Page.