MERCER has developed an innovative approach to savings, enabling employees to distribute their combined employer and employee contributions between their pension plan and a general savings plan.
The approach offers substantial enhancements to the flexibility and value of current pension plans at no extra cost, gaining widespread support amongst clients. The savings plan accrues interest in a similar way to a pension plan and, once vested, employees use the assets to invest in savings that meet their individual needs. This can include housing, debt repayment and ISAs, as well as other savings options. Employees then have the opportunity to 'catch up' with higher pension contributions once they have met their short or medium-term savings requirement. Tony Pugh, UK head of defin...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes