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Stakeholder pensions are required for businesses employing
more than 5 people. Often these schemes are set up as empty
shell schemes simply to comply with the legislation. The
p roblem is that although these cheap pensions were meant
to be the answer to the pension crisis, the low charges on
these schemes do not make them profitable to run for most
IFA businesses.
Paying into pension still attracts as least basic rate tax
relief, so a contribution of £78 per month from your
bank account will convert into an investment of £100.
An immediate 22% gain.
Where a scheme is in place, very often no "advice" is given
to individual employees as the compliance cost of providing
financial advice is too onerous on the IFA. Therefore an
IFA operating this type of scheme can often be no more than
a highly paid form-filler. Many IFAs are charging employers
additional fees for administering these schemes, as the commissions
are reducing.
Then there is the undeniable fact that many employees are
extremely sceptical about pensions generally and many have
more difficult p rob lems to address such as servicing often
very large mortgages, trying to reduce their other debts,
and basic financial issues such as these.
Our solution
We believe that talking
about pensions whilst ignoring debt and other key financial
issues is like "putting the cart
before the horse". We have therefore developed a Financial
Planning tool to be used in the work-place which will seek
to address and continually review an individual employee's
financial planning, out of which decisions about saving
for retirement can be made.
The benefits
By working in partnership with the employer (with
client confidentiality upheld of course), we can together
help employees to get on top of their general financial
planning and work towards financial independence. The benefits
for the socially aware and responsible employer are:
- A more financially aware work-force
- A more content work-force
- Employees reaching retirement
having achieved financial independence
If you are interested in finding out more about our Corporate
Financial Planning service, we would be pleased to hear from
you.
We have included in our section 'Fact-files',
many downloadable fact sheets on numerous financial planning
topics. We suggest that once you have had an initial browse,
you go to this page and see if there are any Fact-Files pertinent
to your situation. Please then feel free to download these items
free of charge.
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