This Momentum Pensions Malta review will talk about the company’s background, what it offers, as well as what’s going on with their retirement scheme.
Momentum Pensions Malta Limited, commonly known as Momentum, is a pension products provider rolled out in 1998 that now has 2 billion British pounds worth of assets under administration.
They are part of the broader Momentum Pensions group that facilitate and manage pension schemes in two more locations, Gibraltar and the Isle of Man.
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Given their recent troubles, it’s a good idea to check your complete portfolio right now because there might be more hidden risks.
Momentum Pensions Malta Review
Who are Momentum Pensions?
The Malta Financial Services Authority has granted Momentum Pensions Malta Limited permission to function as a retirement scheme administrator.
They offer Lite QROPS and Plus QROPS.
Up to 100,000 pounds in transfers or investments can be made with Lite QROPS. Meanwhile, the Plus QROPS allows transfers or investments over 100,000 pounds.
Momentum Pensions QROPS allows retirees aged 55 to 75 to access their retirement benefits any time. When benefits start, participants may choose to take out up to 30% of the total amount as a pension commencement lump sum.
Once you transfer to a QROPS, there is no lifetime allowance cap, and your pension commencement lump sum is not subject to Maltese tax.
Furthermore, where an effective treaty is in place, income might be paid gross due to Malta’s network of double tax treaties.
Momentum Pensions Malta Complaints
Problems with unsuitable investments beset Momentum Pensions Malta’s Momentum Malta Retirement Trust, a personal retirement plan authorized by the MFSA.
The pension funds, according to the complainants, were placed in high-risk structured notes meant for professional investors, which did not fit their low to medium risk tolerances.
Momentum Pensions Malta was accused of accepting dealing instructions that were not signed by the complainants and of failing to act in their best interests as the trustee and retirement scheme administrator.
They also allegedly neglected to alert them to potential financial dangers.
In order to allay these worries, Momentum Pensions Malta was subject to regulatory action by the MFSA, which concluded outstanding issues with the company after examining its comprehensive claims and supporting documentation.
Final Thoughts
Malta does offer advantageous tax treatment for pension plans as it is recognized for being a well-regulated financial hub with a strong legal and regulatory framework. It may be wise to put money into pension plans offered by Malta-based providers.
However, prospective investors must thoroughly evaluate the risks involved and confirm that they are aware of the applicable regulations.
Not only that, it’s important to understand what you’re getting into, so digging into a company’s background and past performance can go a long way, albeit previous performance does not give a hundred percent assurance that they will continue to do well over time.
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