The first step is always the hardest, and it’s no different when it comes to saving for retirement. That does not mean that keeping up regular contribution through the years and even decades is an easy task.
That’s why personal pension plans need to be flexible enough to accommodate the different needs and abilities that come at different stages of life.
In this series of articles aimed at demystifying the world of pensions, BOV Manager within the Bancassurance Office Claire Falzon has explained what private pensions are, delved into pension adequacy, how you can get one going, and the attractive tax rebates offered on one’s contributions.
Here, she outlines the flexibility afforded by personal pension plans, that may put at ease those who concerned about the long-term commitment required.
“While a personal pension plan may be considered as a long term commitment, there is an element of flexibility attached to these plans which enables an individual to adapt to changing needs and circumstances.
“An important element of flexibility is the fact that one can decide to increase or decrease the regular premium.
“This enables the investor to increase contributions as they get older and potentially progress in their career, or even to decrease premiums if one goes through a period where it is preferred to limit costs for any reason.
“There is also the option to pause contributions for some time.
“The scope of saving in a personal pension plan is to benefit the person making the savings. However, a beneficiary may be appointed to benefit from the proceeds in case the death benefit becomes payable.”
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