THE MAZE which is pension planning is one that every employer will face come January 1 next year.
From that date, it will be mandatory for every employee to have a contribution deducted from their hard-earned wages and every employer will have to match that deduction.
There is an option to just go with auto-enrolment to the government pension plan and that’s what will happen unless employers decide to explore other options – options which Wallace Financial says can be much better value for money both in the short term and the long term.
“We want to see employers take ownership of the packages they and their employees will be paying for. There is a window now where companies have a chance to really improve the employer/employee relationship by getting the best deal for the people who work for them,” Jim Wallace said.
With employee mobility a factor in today’s business environment, hanging onto good people is important, Jim says. And it’s no longer just about what’s in a pay packet at the end of the day. Benefit packages which include pension plans and health cover are powerful persuaders in encouraging staff to stay put.
Jim says that “there are many plans out there. I don’t feel that a lot of employers have actually dug under the bonnet of what’s coming. What we want to do is give employers more options.”
And the time to look at those options is now. When January 1 comes, it will be too late.
“We can do a financial review of what are the best options for individual companies and their employees and show what the benefits of an employer sponsored scheme can have over auto-enrolment, both in the long and short term,” Jim said.
“And people working for a company are happier to know that their employers have a real interest in them and wan them to have the best deal”.