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Your pension is the money you will live on when you retire, so saving for your pension is one of the most important investments you will ever make.
Pensions can be paid from one or more of three different sources:
 The Government
Your Employer
An Insurance Company, or other Financial Institution
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We all need money to live on when we retire,
but unless you win the lottery or inherit
a large sum of money, or have accumulated
certain savings or assets your pension is
likely to be the main source of your income.
So unless your pension is big enough, you
won't have sufficient money to enjoy life
to the full.
Putting money aside for retirement could
be one of the biggest investments you make,
maybe even bigger than buying your home.
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People are living longer and healthier lives, so it's conceivable your retirement could easily last for 20 or 30 years, maybe even longer. When you retire you will still need to pay the bills and you will want to have money left over in order to make the most of your increased leisure time.
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To have the lifestyle you want when you stop work it's likely you will have to
make additional savings. Long-term insurance
savings plans are likely to be the most
appropriate option as they are sometimes
specifically designed with retirement in
mind. These might be marketed as ‘Retirement
Plans’. They will provide you with a cash
sum at retirement, which could then be used
to provide you with a regular income.
However, depending on your personal and financial circumstances there might be more suitable options
available which you should discuss with an authorised financial adviser.
Use our retirement planning tool to find out what you can expect to receive from the Government, and how you can make a difference.
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The current main source of pensions in Malta is the Government, however the level of pension you are entitled to might not be what you need in retirement to be able to do the things you enjoy.
The State Pension will give you a basic income when you retire but it's up to you to decide on the kind of lifestyle you want when you retire, and to find out what you need to do to achieve it.
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You simply agree to set aside a sum of money on a regular basis, which is then invested for you until you reach retirement age, when it will be made available as a cash lump sum. You are then free to spend or invest it as you wish, or convert it into a regular income. The size of the cash sum at retirement will depend on how much you have paid in and what returns the investments have made.
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Like many people you might feel retirement is too far away to think about. Maybe you think you can't afford to save for the future now, when there are so many other things you have to pay for everyday.
Although retirement might seem a long time away, the earlier you start saving the less it will cost you to build up the amount of money you will need. That is because the longer your money is invested the more chance it will have to grow, and if you start early enough you might even be able to afford to retire early.
Each year you delay saving for your retirement means you will have less money when you retire, or you will have to work longer before you can afford to retire.
Our retirement planning tool will show you the impact of delaying starting your savings for a number of years.
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