Financial viability of selected financial products available in the local market

Abstract

Increased longevity and reduced fertility have generated a rapid growth in the number of old people who are too physically or mentally frail to care for themselves and therefore require expensive long-term care. Apart from its effect on an existing social security scheme, the effects of an ageing population will have substantial impacts on overall economic welfare. Malta as a society cannot escape this problem by simply taking apart the social security system. The State must find an answer to this problem by shifting part of the responsibilities by increasing private pension plans or by reapplying and updating the present fiscal framework. This dissertation evaluates the financial viability of selected financial products on sale locally. It compares the market potential and risk of certain products and looks into the demand for such products.