In his weekly video blog, the Minister for Finance discusses the recently launched private pensions schemes, through which the Government is encouraging people and families to save for a more comfortable future.
Prof. Scicluna says that he was pleased to be able to launch the initiative, in view of how for many years the pension issue was characterized by much debate and yet little action.
He explains that by means of these two schemes, the Personal Retirement Scheme and the Individual Savings Account, the Government is incentivizing those who opt to set something aside for their future and benefit from a tax incentive on the amount saved.
He explains that the fiscal incentives would be tied to private pension products to be offered by local banks and other financial institutions, and that the incentives were drawn up following the work carried out by a working group established to address the pension issue.
The Personal Retirement Scheme is the provision of an annual €2,000 tax credit, with benefits of up to €300 per family.
The second scheme, the Individual Savings Account (ISA), provides families the option to open a tax free savings account with up to €2,000 per year per couple invested in such accounts. Individuals can withdraw funds from such accounts any time, similar to a normal savings account.
– 13th November, 2014