Plan Sponsors Urged to Take Active Interest in Employee Pension Provision
16 August 2012 (PLANSPONSOREurope.com) – Plan sponsors need to take an active interest in the pension provision or society will be left carrying the can through increased taxes, Andy Zanelli, head of retirement planning at AXA Wealth, told PLANSPONSOR Europe.
Latest Office for National Statistics data reveals that corporation tax, income tax and national insurance contributions are responsible for more than two-thirds of HM Revenue and Customs receipts, much of which is paid by plan sponsors.
Zanelli said: “On a more fundamental level, a pension is, in essence, a replacement for earnings lost at the point of retirement – so assisting employees with education and access to help in this area should lead to a ‘feel good’ factor in the work force. Better productivity, less absence and improved staff retention must lead to a better result for both parties.
“With many workers not actively seeking any sort of financial advice, the workplace has become the focus of attention from the government in the form of auto-enrolment. Capturing the attention of the issue facing future retirees in the post-education/before retirement age bracket is easier for the employer to facilitate. Allowing trusted partners to have access in order to educate and assist the work force or adopting a more educational approach themselves can only benefit both parties in the long term.”