Mapfre MSV Life organised a seminar on Workplace Pensions and Default Investment Options during which it presented, for the first time, the Mapfre MSV Life WorkSave Pension scheme to the participants. The seminar was organised in collaboration with Fidelity International, a leading international company which offers investment management services including mutual funds, pension management and fund platforms to private and institutional investors.
Addressing the participants, David G. Curmi, chief Executive officer of Mapfre MSV Life, highlighted the importance of saving enough, saving well and saving wisely for retirement.
"Many people either lack awareness on the importance of saving towards retirement or tend to always postpone financial planning to a later date," said Curmi. "Several individuals, both young and not so young, believe that pensions are something to think about later in life, and as a result, decisions pertaining to pensions are often postponed," he added. This could be due to a lack of awareness on how pension systems work, leaving many at a significant risk of realizing too late that their statutory pension will not be enough to ensure an adequate or desired standard of living during their retirement years. In this context, Curmi highlighted the importance that one starts to save early and regularly, emphasising that future pension adequacy is not only dependent on how much people save and how long for, but also on the asset classes which they choose to invest in.
The seminar was then addressed by Parth Soneji, Solution designer and Isabella Labak, Client Portfolio manager at Fidelity International. They spoke about the required annual savings rate that is necessary to achieve a desired income replacement rate in retirement and various savings factors that can help an individual on the journey towards retirement. A detailed presentation was provided on the Fidelity TargetTM (Euro) Funds which adjust investment risk in-line with time to maturity thus making them a compelling Default Investment Option linked to workplace pension schemes.
The seminar was also addressed by Michael Galea, chief Business Development officer of Mapfre MSV Life, who presented the Mapfre MSV Life WorkSave Pension scheme details and highlighted that this is the first insurance based Voluntary Occupational Pension scheme that will be available on the market. Galea explained that Mapfre MSV Life will work closely with employers to help them structure a WorkSave Pension scheme that effectively meets their requirements and objectives and that would help them in their recruitment and retention strategies, positioning them as an employer of choice.
"The Mapfre MSV Life WorkSave Pension scheme is set up with a Default Investment Option that the employer selects and that is offered with the majority of the workforce in mind, helping to address the behavioural issues that prevent savers from saving well for retirement. Our Default Investment Options include the Fidelity TargetTM (Euro) Funds and other conservative and balanced investment strategies from a wide range of funds that we are able to link to," said Galea.