Finance News

How Sparkasse Bank Malta plc is now servicing Retirement Pension Schemes

sparkasse bank malta retirement

Sparkasse Bank Malta is now able to act as a custodian to retirement pension schemes, expanding its reach and range of services.

Sparkasse Bank Malta plc, a local market leader in custody and depositary services with more than €8 billion worth of assets under custody, recently announced it has gained authorisation to act as a custodian to retirement pension schemes. Managing Director Paul Mifsud notes this service will complement the bank’s existing banking and investing services offerings and further its ability to serve its institutional and corporate customer base. 

We wanted to be more than just somewhere to process money. We wanted to be trusted as a service provider within the investment services and custodian markets. We’ve achieved that and helped the economy in Malta thrive by doing so,” Paul Mifsud has said.

The Bank’s team of experts is looking forward to expanding the Bank’s service offering through the ability to now act as Custodian to retirement pension schemes. As retirement pension schemes continue to grow in Malta, Sparkasse Bank Malta plc sees an opportunity to once again fill a gap in the local financial services market. 

Planning for retirement is crucial, no matter what stage of life you’re in. Without planning, you’re unlikely to reach goals, and a financial professional can be an important adviser and confidant when it comes to understanding the benchmarks you should be working toward each year to ensure a comfortable retirement. 


Make a Plan

Retirement often feels like it’s far away — until it doesn’t. Many people find themselves putting off retirement planning and investing until they realise they’ve wasted years of potential returns and will now have to delay retirement. The golden rule of investing is sooner is always better. Even if you’re early in your career and don’t have an amount that feels significant to set aside each month, you can still start investing small sums that will grow over time. 

Creating specific goals can help make retirement feel more “real” and motivate you to make smart financial decisions. However, knowing exactly how much money you’ll need can be difficult. This is where working with a retirement expert is helpful. An easy way to start is to examine your budget and determine how much you currently spend each month. This is the bare minimum you should expect to spend in retirement. 

Next, consider how you’ll save all that money. It may seem impossible, but don’t forget about the power of investing. By working with an expert to manage your retirement portfolio, you can easily grow your retirement accounts. A professional can help you determine how much you should be investing to achieve your goals in your preferred time frame. They can also discuss your risk tolerance and help find investment strategies you’re comfortable with. 


Stick To the Plan

It’s important to make a retirement plan that feels feasible to you. You can still enjoy life while working to achieve retirement goals. A plan that’s overly restrictive will most likely result in a rebound effect whereby you feel deprived and go on spending sprees. This is another reason why starting early and working with a financial professional is a good idea. They can help you understand how to budget so you can enjoy fun purchases while still reaching goals. 

Many people struggle to save because they adjust their lifestyle each time their pay increases. Consider whether or not you really need a new car or bigger apartment to show off your raise. If not, it may be a better idea to invest that money into your future retirement so you can enjoy more freedom later. 

We often think of retirement in terms of age, when we should be thinking about it in terms of money. The smarter you are with saving and investing, the earlier you can retire and do everything you’ve put off for your career. 

Paul Mifsud shares that the Bank’s No. 1 priority has always been its customers. The decision to expand into a new branch of services isn’t one that was taken lightly, but Sparkasse Bank Malta plc believes it can help more customers in the retirement pension scheme space, especially when there is a greater demand in the market for private pensions. 

Sparkasse Bank Malta plc’s Other Service Offerings

Sparkasse Bank is authorised by the Maltese Financial Services Authority (MFSA) as a credit institution and investment services provider and provides banking, investment, depositary, and fund custody services. Its solutions include both domestic and cross-border depository services, clearing and settlement services, cash management, and general banking services. It’s uniquely prepared to serve international clientele with multi-currency accounts. 

The Bank holds multiple licences that allow it to fully service its Customers. It acts not only as a credit institution but as an investment services firm for individuals and corporations. Most notably, the Bank offers custody and depositary services to fund customers. These aren’t services typically offered by most financial institutions. Of these licences, three are issued by the MFSA and one is issued by the Central Bank of Ireland. Most recently, the Bank was authorised by the MFSA to start acting as a Custodian to Retirement Schemes.  

Sparkasse Bank Malta expanded to Dublin in 2018, a move that was part luck and part strategic genius. According to Paul Mifsud, “Ireland was a natural choice for the Bank due to its membership in the EU and its English-speaking environment. The Bank had already established relationships and contacts with several service providers in Ireland, which made the move and the decision all the more feasible.” Dublin has since become an attractive choice for many financial institutions because of the English language, access to the EU, and private fund-friendly rules. This move is just one in a long list of smart decisions Sparkasse Bank Malta plc has made to differentiate itself and remain insulated from competitors.

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