Life Events and Savings Cycle Potential Life-Cycle Events -Continuing with further and higher education - Starting work - Buying a car - Setting up a new home - Getting married - Having children - Getting a pet - Losing a job - Starting a business - Planning for retirement - Getting separated or divorced - Being victimised by fraud - Inheriting money - Coping with illness or disability - Dealing with death - Caring for a loved one - Living one's retirement

Additional Annual Income Required over and above Pension Income to Maintain 75% of Quality of Life Enjoyed in Employment Additional Income Required 1,2501,4863,10510,60518,10525,60533,10540,60548,105 Pension10,00011,895 75% of Annual Salary 11,25013,38115,00022,50030,00037,50045,00052,50060,000 DO YOU KNOW? If you invest €500 annually between 35 to 65 years of age in a normal savings account with an interest rate of 0.1%, your €15,500 capital will increase to €15, On the other hand, if you invest the same capital in a savings account with an annual 3.0% interest rate return, your capital increases to €25,

Do You Know? 41.6% of Maltese persons state that the information available on retirement is poor whilst a further 39.8% say that it is adequate. Of those who say that the information is poor, 90.3% do not save for retirement. 66.4% and 78.9% out of a sample of the Maltese population of 1,255 do not know the Maximum weekly social security pension income. Most of the respondents in a survey on financial literacy do not hold a specific savings plan for retirement. Those who do, invest approximately €1,161 annually - €97 per month Only 61.4% of Maltese persons are able to answer correctly the question of whether an inflation of 5% results in more or less purchasing power.

Understanding Retirement Income  Addressing gaps in knowledge about retirement  Understanding what constitutes ‘enough’ retirement income  Understanding life-events and how these affect savings  Understanding risks  Life expectancy  Inflation  Quality of life  Management of savings  Withdrawal of savings

Understanding Financial Literacy  Understanding behavioural responses  Understanding the complexities of financial markets  Understanding financial products and choices and associated risks  Understanding rights and protection

Draft National Strategy for Retirement Income and Financial Literacy  Ministry for the Family and Social Solidarity  Malta Financial Services Authority  FinanceMalta  Department of Social Security  Directorate for Quality and Standards in Education

Proposed Branding and Key Messages  Growth  Provision  Nurturing  Community  Organisation  Productivity

Draft National Strategy for Retirement Income and Financial Literacy Proposes as Vision: Improving the personal financial well- being of Maltese citizens during life- events and retirement by enabling them to make better informed financial decisions that fit their circumstances

Draft National Strategy for Retirement Income and Financial Literacy Proposes as Underlying Principles- Maltese citizens:  Understand how the Social Security pension works & resulting impacts  Understand importance of saving and investing for one’s retirement  Understand better than previous generations range of complex financial management strategies  More competent on how financial markets operate and with deciding on investment and savings products  More aware of their rights and protection mechanisms

Draft National Strategy for Retirement Income and Financial Literacy Proposed Strategic Thrust 1: Financial Education  Compulsory education  Youth education  Adult education  Local community  Vulnerable groups

Draft National Strategy for Retirement Income and Financial Literacy Proposed Strategic Thrust 2: Trusted Information, Knowledge Provider  Understand the state of play  Disseminate information and knowledge to different target populations  Engage the media, civil society, constituted bodies  Engage employers, unions, local communities, financial services operators  Leverage digital media

Draft National Strategy for Retirement Income and Financial Literacy Proposed Strategic Thrust 3: Partnering  Establish a Consultative Council  Establish ad hoc working groups  Work with and through existing bodies  Participate in international fora  Twin with similar organisations overseas

Draft National Strategy for Retirement Income and Financial Literacy Realising the Strategy Establish a Coordinating Vehicle  Coordinate ‘soft’ reforms directed at culture and behaviour Financing  Government  Institutional Partners  Members / Affiliate Members  In-kind Support  European Social Fund Secretariat  Small  Work with and through existing networks

National Consultation and Discussion Process  Will be carried out between 27/01 and 23/03  Draft National Strategy will be revised as appropriate to incorporate feedback