What is the advantage of a management pension scheme?
Higher-paid employees often want to pay as much as possible into their pensions. This is because they can then save on taxes and build up their retirement assets. It is often the case, however, that they do not fully utilise the opportunities permitted by law when structuring their retirement plans. That is why many companies offer their senior staff a management pension plan, which presents better options to save and a higher buy-in potential. With some solutions, members also have the option of selecting the investment strategy themselves.
An attractive management pension scheme is not only worthwhile for employees, but for employers as well. By offering an attractive plan, companies are able to retain highly qualified employees over the long term.
It is also important to note that management pension schemes do not necessarily involve higher costs for employers.