Once upon a time many employees enjoyed the security of a job for life. As part of the package they would pay into a company pension scheme with a view to retirement.
Increased fluidity in the labour market means that job and company changes are far more likely. For this reason it pays to be aware of your options when it comes to occupational (also known as company) pension schemes.
Occupational pension schemes offer employees the opportunity to contribute to a pension policy in the form of payments fixed as a percentage of the salary you earn, with match payments from your employer. Such contributions come with tax relief.
If you an employer looking to offer a pension scheme to your employees, or an employee seeking advice on your contribution to such a scheme, and the ramifications it has for your future, then give us a call.
Options that we can discuss with you regarding occupational schemes are:
A Defined Benefit (DB) pension is based on your salary and years of employment. Matched by the employer’s contribution it pays out a guaranteed yearly amount on retirement.
A Defined Contribution (DC) scheme, unlike a DB pension, is not pegged to salary and years spent with a company, giving you instead a pension pay out based on your accumulated contributions.