EFPG has just posted an article about considerations that both employees and employers should consider about the Occupational Scheme or Group Personal Pensions that the employer is offering or is going to offer.
The article is not technical but covers general points that EFPG believes to be the most relevant areas that should be reviewed.
For employees the article covers the points:
- How much will my employer pay into my pension?
- How much will I have to pay into my pension? Is this flexible?
- Will the combined contributions be sufficient to provide enough income in retirement? If not can you contribute more?
- Where is my money going to be invested?
- What costs will my pension face?
- How flexible is the arrangement? Are there any penalties for altering/stopping contributions? Can the pension be transferred? Can the arrangement be cashed in and invested elsewhere?
For employers the article covers the points:
- Should you offer your employees a pension scheme?
- If so how much should you pay into it?
- And at the end of the day will your employees thank you?
The full article is quite long but does give insight to the questions as posed above. If you would like to read it, please follow this link.