January 2023

Maltese State Pension

If you are born after 1962, the statutory retirement age in Malta is 65 years. In Malta, you are entitled for a state pension if you are in employment (or self employed) and pay a social security contribution.

If you are born after 1969, there must be at least 41 years of contributions to receive a full state pension.

But what do we mean when we say full state pension?

Your pension in Malta will be the calculated on two thirds of your salary, subject to a capping. First and foremost, to arrive at an individual’s final state pension, the income formula for someone born after the 1st January 1962 is based on the best 10 years of the last 40 years.

The maximum pensionable income as at 2021 was €25,258, which means, that you will not get more than 2/3 of this salary as a pension.

Do you think that you will manage to live comfortably with this amount? The best time to start saving for your retirement is when you receive your first ever pay check. The second best time? This month.

November 2022

Financial Priorities

Whenever money comes into our lives, our tendency leads us to think first about what we can spend it on – what to do for fun, how much clothing we can buy, where we can go on vacation.

However, few people tend to understand the importance of setting financial priorities.

· Do we really need the latest mobile phone if our current one is working properly?

· Do we really need the buy branded clothing every month when our wardrobe can’t take any more clothes?

· Do we really need the buy an expensive car if we do not afford it?

A lot of people tend to spend all of their salary, without even noticing how much they are spending on travel, food, clothes and the latest technology.

Unfortunately, a lot of people tend to forget the importance of saving towards their future, towards having an adequate pension at retirement and not be a burden on their relatives. How can we spend 20% of our salary on food delivery every day when we can prepare it ourselves? More than that, we then tend to forget about saving for our future when we will really need the money to live comfortably at retirement. Have you ever thought on the maximum pension provided by the government? Will that be enough?

We must enjoy life, travel and go to our favourite restaurants. However, we must also plan ahead and save towards the future.

July 2022

What is the difference between a 'With Profits' and a 'Unit Linked' Investment?

Life Insurance companies generally offer two types of investment vehicles. These are called with profits investments and unit linked investments.

But what are the main differences between these two?

With profits

A with profits investment is generally a capital guaranteed investment and builds its value from annual bonuses paid by the insurance company. These bonuses are not guaranteed but once added to your policy, such bonuses cannot be removed. To help ensure the life assurance company can pay a bonus each and every year they normally hold back some of the profits in reserve so in the event the with profits fund performs badly they have enough in their reserve to still make a bonus payment. This is what is called smoothing of returns.

Unit linked

In a unit linked savings/pension Plan, you can choose from a variety of funds offered by the insurance company and the value of your policy is linked to the value of these funds. Hence, the value of your policy can go up or down depending on the performance of the fund/s selected.

By Investing in such funds on a regular basis, you can take advantage of what is called “cost averaging”. This is where you are buying units at their troughs and peaks averaging out your overall price for each unit bought.

Main differences

With a unit linked investment, you are completely open to market conditions as your investment value is directly linked to the value of the funds underlying it. A with profits investment, however, builds a guaranteed value over its term.

May 2022

What is the difference between a savings plan and a pension plan?

The main difference is in the method of payout. Consider your expenses after retirement to make the decision. If you require a large sum of money at once for specific needs, choosing a plan which provides a lump-sum payout might be a better option for you.

However, if you wish to have a steady income source every month to meet general expenses, a Pension Plan might be a suitable option for you. More than that, by having a pension plan, you might also benefit from tax credits currently offered by the government.

April 2022

Compound Interest

If you want to build any kind of wealth, you will have to utilise the power of compound interest. By putting a part of your monthly income into a current account, or into a jar at home, you will miss out on this valuable financial opportunity.

Compound interest is extremely powerful, but you need to give it enough time to see great results. You won’t just invest one day and see amazing results after a couple of days. However, if you continue to delay to start saving money, you will end up seeing no results at all.

March 2022

Should I save for retirement or other major life expenses first?

This is a very common question asked by individuals. Your retirement planning is as essential as any other expense in life. You do not want to reach an age where the income source is compromised, and you have to make harsh compromises. However, take into account the urgency of other expenses in terms of your savings as well.

February 2022

Why should you plan for retirement?

Quick tip

Most people worry about being a burden to their family in their old age. It can also be emotionally distressing to be dependent on someone else for your expenses. Retirement planning allows you to maintain a good lifestyle without depending on family members.

Some people think of retirement as a time for achieving goals that were ignored due to more pressing needs in life. If you put in time and effort into retirement planning, such dreams can come true with ease.

January 2022

MAPFRE MSV Life Child Savings Plan

• Save from a minimum of €40.00 per month.

• The Plan will provide a tax-free cash lump sum at maturity!

• The value of this Plan grows through the addition of Regular Bonuses as declared by MAPFRE MSV Life

• This product is manufactured by MMSV and distributed by Mark Bezzina.

• Tax treatment depends on individual circumstances and is based on current tax legislation which may change in the future

• If you cash in your Plan before the date of maturity, you may not get back as much as you invested. What you might get back will depend on the investment performance and the bonuses we might add. The rate of future

• Bonuses is not guaranteed and may change over the years.

Mark Bezzina is an enrolled Tied Insurance Intermediary under the Insurance Distribution Act, for MAPFRE. MAPFRE refers to MAPFRE Middlesea p.l.c. (C-5553) and MAPFRE MSV Life p.l.c. (C-15722). Both entities are authorised under the Insurance Business Act, Both the TII and the entities are regulated by the Malta Financial Services Authority.

Insure and Save!

July 2021

All of our esteemed clientele will benefit from the ‘Insure and Save’ scheme. This will offer a number of discounts from local businesses as well as access to exclusive offers. Download the app now from the app/play store.

The MAPFRE Middlesea Insurance loyalty program provides clients with the opportunity to save money during their day to day activities. Holders of the card will have the opportunity to avail themselves of up to 30% discount in a number of outlets including household goods, hotel accommodation, health and beauty products, electronic equipment and restaurants, among others.

For more information about this loyalty scheme please click on the link below where you will find a list of participating businesses and their respective discounts and offers.

https://www.middlesea.com/insurance-mt/insure-and-save/