Last Updated on Wednesday, 10 August, 2022 at 12:03 pm by Andre Camilleri
Bank of Valletta has built a long-term partnership with the Malta Hotels and Restaurants Association (MHRA). Through this alliance BOV supports MHRA and its members by sharing industry insights, analysing financial instruments and identifying how they can benefit MHRA’s members and their employees.
During the latest Quarterly MHRA Seminar, held recently, Claire Falzon, Manager Business Generation & Support at Wealth Management Bank of Valletta brought workplace pensions to the forefront.
Over the past years, the profile of workplace and private pensions have increased significantly. Through workplace pension schemes, employees have an additional pension plan to the state pension we are all accustomed to. In practical terms, both workplace and private pensions constitute the perfect tool to supplement the state pension.
Workplace pensions offer important benefits to both employer and employees. Plans start from a nominal monthly amount of €100, to which both the employer and employee can contribute. The employer sets up the scheme and defines how it will work, including the parameters determining the contribution the company will be making towards the scheme. This spells important benefits for the employer, even from a taxation perspective since workplace pensions qualify for tax incentives of around 25% up to the ceiling set by Government. Under the present legislation, the company can enjoy a tax credit of up to €750 per employee per annum. Likewise, the employee is eligible for tax credit equivalent to his/her contribution for the workplace pension, over and above any tax credits they already enjoy under a private pension scheme.
“Workplace pensions are ideal instruments that ensure we maintain our current standard of living once we retire,” explained Falzon. Admittedly, it is not always easy to establish the gap between the state pension and the amount required to maintain one’s desired lifestyle. “But that is precisely why it is critical to take the first step and start saving and investing on a regular basis,” she stated, highlighting the necessity to factor in variables like inflationary costs and personal ambitions.
In offering workplace pension schemes, companies increase their competitiveness. “In a world where companies are competing to attract and retain talent, setting up and contributing towards a workplace pension scheme can be a game changer, giving the employer a decisive competitive advantage.”
Planning for the future is always a daunting task, but it does not have to be. Here is where a financial partner can make a big difference. Bank of Valletta is offering its support to companies interested in setting up pension schemes, as well as to individuals who are seeking to plan ahead for their future. One may call for planning support and guidance at any one of the Bank’s Investment Centres or across its extensive retail network. Interested parties are invited to contact the Bank for an appointment either by email at bancassurance@bov.com or by calling 2275 1627.
