We mean two things when we talk about planning for retirement.  The first plan is to set up a pension scheme, either a personal pension or participation in your employer sponsored occupational pension scheme.  Then you will need to regularly contribute, throughout your working life with the aim of accumulating a pot of money, which you can then use to replace your salary when you retire. Read more

It may be well established at this stage that CPAS are considered to be the pension provider of choice for the construction sector, however, it has become quite clear to us in recent times that some might consider the ‘construction sector’ to include only those who work on sites, so we ask the question; are pension savings only for site workers?

Since the introduction of the Sectoral Employment Order (SEO) last year, and the conversations around the #BuildingEquality campaign including the gender pay/pension gaps, we’ve had many discussions with company owners and office staff regarding their own pension provision. These conversations usually take place when they contact us to set up or discuss their site workers’ pensions or when we are arranging site visits to give toolbox talks to their employees in the Construction Workers Pension Scheme (CWPS).

The team at CPAS receive regular phone calls from office staff who manage the pensions for their site workers but they never consider their own savings for retirement. When we ask them about their own pension savings we regularly hear ‘I don’t work on site’, ‘I didn’t think office staff could be included’, ‘I wouldn’t know how to go about it’. It should be said loud and clear – CPAS have a pension solution for the entire workforce in the construction industry.

This includes office staff and management, not just those who work on site. From a survey in 2017, it was found that only a third of private-sector workers in Ireland have a pension plan. Furthermore, 60% of those without pension savings said they don’t actually know how to start one. If you are one of the two thirds who do not have a pension plan in place and think you don’t need to save for your retirement, I give you three points to consider – the State pension amount, service gaps and longer life expectancy.

CPAS

Firstly, think of your annual take home pay which you currently live on. Now, compare that figure to €12,652. Do you think you can you live on this amount a year? This is the current maximum State pension amount. Will this amount enable you to do all those things on your bucket list that you’ve planned for when you’re finished work?

During your career, have you already or do you plan to take a break for one reason or another? Maternity or paternity leave, home care, rearing of children or just a career break to travel? If you do, this can affect your State pension entitlements and can also reduce the number of years you have to save towards your retirement.

On a positive note, our life expectancy is increasing; 50% of those born today are expected to live to 100. Indeed some of our CPAS members in receipt of a monthly pension have reached the age of 100 with the oldest being 105! As well as this, the state pension age is increasing and will rise to 68 by 2028. While living longer is good news, this also means that our savings will have to stretch further and last a lot longer. Will €12,652 a year be enough?

Taking these points into consideration, it makes perfect sense that everybody who works should be saving towards their retirement. Indeed,the government have issued a Roadmap for Pensions 2018 to 2023 where they are looking to make pension savings mandatory in the next 4 to 5 years.

With the introduction of the Construction SEO in October 2017 and the Mechanical SEO in March 2018, the construction sector have taken the lead in providing pension cover for their workers covered by these SEOs but let’s not forget about all the other workers in the construction sector who may not come under the cover of the SEOs. Now is the time for the construction sector to make a difference to the future of all their employees through pension savings.

CPAS can facilitate this on the same terms as site workers through the Construction Workers Pension Scheme (CWPS) or we can design bespoke pension arrangements for individual employers and members through the Construction Executive Retirement Savings (CERS). For self-employed individuals in the construction sector without pension cover we can also provide cover through the Construction Industry Retirement Trust (CIRT). As the pension provider of choice for the construction sector CPAS knows your industry, so don’t hesitate to call us today and we can get you started!

Planning for the Future

As in life, there are many variables and changes. Planning for retirement and protecting your financial future involves forming expectations about income and expenses over the rest of your life, based on present assumptions. As the pension administrator for pension schemes in the construction industry, we have a range of solutions to help you prepare and protect your future investments. Whether you are self-employed, running a large company with multiple staff requirements, looking for life and income protection, we can help.

For more information and to find the right solution for you, contact our team for a no obligation discussion. Our team of financial specialists will put you in touch with the right team member. No obligations, no hidden fees, no jargon – just a straight forward chat to help you secure your present and your future.

Contact us via email (info@cpas.ie) or by phone (01) 223 4949

If you have a pension plan do you read and understand your annual benefit statement? If you don’t here’s some free advice!

In Milestone Advisory, I spend the majority of my time with clients who are approaching retirement or who have already reached this particular milestone.  This part of the financial lifecycle is about taking stock of what you have already accumulated in pension funds and how to maximise its benefits into the future.

Often, it is not until this point that people look for advice around their retirement planning.

I met a couple recently who were decidedly different. They “hadn’t a clue” about pensions, but they had both recently turned 50 and felt they needed some help. While both had accumulated pension funds over the course of their working lives, they did not know what these funds meant for their financial future.

At the end of this particular meeting, I felt that the information I provided and explained was the sort of information everyone needs:  So, here it is – for free.

Both of my clients, having been in pension schemes since their early 30’s felt “that box was ticked”.  This might once have been true; if you joined a company in your early 20’s and stayed there until your 65th birthday with a pension promise of 2/3rds your final salary.  However, defined benefit pensions, where your income in retirement was defined at the outset are no longer the standard type of pension.  Nor is staying with one employer for life.  Now, the vast majority of all pensions are defined contribution i.e. the only thing defined is the pension contribution being invested.

Annual benefit statement 

In this case, you will need to understand what the contributions will translate to in income terms when you retire.  This is where your annual benefit statement comes in.  Each year, your provider will send you such a statement, outlining the contributions that have been paid in along with the current value of your fund.  It will also lay out a set of figures that show you the value of your income in retirement based on these contributions.

It is only when you read and understand this that you can decide if the “pension box” is ticked.  It may be that you are on target for a financially comfortable retirement or you might be surprised to learn that there is a gap between what you will need compared to what you have.

A pension scheme is simply a tax efficient long-term savings plan, but knowing what the outcome will be at retirement is vital.  It is the key to ensuring you have time to enhance your savings should you require.

It is crucial that you take some time to read your defined contribution (DC) benefit statement each year.  Although the layout varies between providers, legislation dictates that all providers include the same information.  This includes your personal information, salary details, your pension contribution level and a statement showing contributions remitted to the scheme in the year since your last statement.  You should take a look over this information to ensure it is correct.

The key area is what is known as a statement of reasonable projection.  This is where you will see the details of your projected benefits at normal retirement age, based on a set of certain assumptions.

While this is not a cast iron guarantee of what will be available to you at retirement, it is the best estimate of what your future fund value and pension will be and the only way you can establish if your contributions into your pension will provide you with meaningful income in retirement.

 

Time to review

Back to my new clients, a couple in their 50’s, with a file full of unread benefit statements.  We looked at each of their most recent statements.  Both were happy with their fund values, surprised they had saved so much over the years.  Both equally surprised by how those fund values translated into income in retirement.  Taking into account the fact that their mortgage would be paid off by the time they retire and that they would both be entitled to the contributory state pension when they are 68 they still saw a potential shortfall in their desired income.  Finding out now at age 50 gives them close to 20 years to address this.  Rather than at 65 or 68 when they go to collect.

 

For further information please contact Susan O’Mara at: susan@milestoneadvisory.ie or phone: 01-4068020

Milestone Advisory DAC t/a Milestone Advisory is regulated by the Central Bank of Ireland.

 

Making contributions to a pension plan could be the answer to reducing your tax bill.

Did you know that you can make a contribution to a pension plan before the 31st October each year and claim tax relief for the previous year?

October 31st (or 12th November 2019 if you use the Revenue Online Services (ROS) to pay your tax bill) is the final date on which you can claim tax relief on backdated pension contributions, in other words, this is the last chance to get some money back from the tax man for 2018!

If you are a PAYE employee and you pay a lump sum Additional Voluntary Contribution (AVC) by cheque/Direct Debit and claim tax relief on this AVC by 31st October you can get tax relief in respect of the previous calendar year.

For example, if you pay a lump sum AVC by 31st October 2019 you may get tax relief in respect of any unused tax relief for 2018 providing you claim this relief from the Revenue by the October 31st 2019.

Example

Additional Voluntary Contribution paid 25 October 2019          €2,000

Reduction in 2018 tax bill (40% tax payer):                              €   800

Actual cost to you of additional €2,000 into your pension:       €1,200

 

Self-employed people can also claim back some tax:  Let’s say you have a bill of €10,000 for 2018 and preliminary tax of €10,000 for 2019 to pay by 31st October 2019. You could pay Revenue the €20,000 and this job is done for another year or you could make a payment of €5,000 to your pension. This will have the effect of reducing last year’s tax bill by 40% of that €5,000 (i.e. €2000).  As preliminary tax for 2019 is 100% of last year’s bill, you also reduce the preliminary tax by the same amount (i.e. €2,000).

So, you could pay Revenue €20,000 or you could put €5,000 in your pension and pay Revenue €16,000 (i.e. €20,000 – €2,000 – €2,000). Your total spend is only €1,000 more but for that extra €1,000, you pay Revenue the amount due and also have €5,000 in your pension fund – it’s a win win situation!

The following table shows the percentage of your income that you can get tax relief on when contributing to a pension plan, depending on your age and subject to a current maximum annual earnings amount of €115,000p.a.

Remember Saving for your retirement is still incredibly tax efficient.

As well as tax relief, the funds in which your contributions are invested currently benefit from tax-free growth, unlike most saving methods which may be liable for DIRT Tax or Capital Gains Tax. This means pension funds benefit from being able to reinvest the non-taxed returns to generate higher future returns and should build up quicker than a fund that has to pay tax on its investment returns.

Also, when you retire you can take part of your pension fund as a tax-free lump sum. The amount you can take depends on the type of pension plan you have in place. It is important to remember that your regular pension income or Approved Retirement Fund ARF may be subject to tax.

 

Planning for the Future

As in life, there are many variables and changes. Planning for retirement and protecting your financial future involves forming expectations about income and expenses over the rest of your life, based on present assumptions. As the pension administrator for pension schemes in the construction industry, we have a range of solutions to help you prepare and protect your future investments. Whether you are self-employed, running a large company with multiple staff requirements, looking for life and income protection, we can help.

For more information and to find the right solution for you, contact our team for a no obligation discussion. Our team of financial specialists will put you in touch with the right team member. No obligations, no hidden fees, no jargon – just a straight forward chat to help you secure your present and your future.

Contact us via email (info@cpas.ie) or by phone (01) 223 4949

 

Famed economist and Nobel Prize winner Harry Markowitz called diversification “the only free lunch in finance.” The thought is that by diversifying, an investor gets the benefit of reduced risk while sacrificing little in expected returns over the long run. Diversification is a technique that reduces risk by allocating investments in various different asset classes. Diversified portfolios should (in theory) provide a ‘smoother’ return without the large highs and lows i.e. volatility, associated with equities. It aims to maximise returns by investing in different assets that would each react differently to the same event. Although it does not guarantee against loss, diversification is the most important component of reaching long-term financial goals while minimising risk. Remember, however, that no matter how diversified your fund, risk can never be eliminated completely.

 

The rise in Alternative Assets

For many years pension funds have diversified portfolios by holding equities and bonds. For the most part, these two types of investments behave differently, for example; bonds traditionally offer some protection when there is an equity sell-off. However within the last decade pension funds can now access a new asset class, alternative assets as another tool for driving portfolio returns and increasing diversification.

Alternative investment is a term for any investment that does not fall into the traditional equity or bond category. It includes relatively easy to understand assets such as commodities (gold, oil, aluminium etc.) and real assets, such as property, forestry and infrastructure. It also covers more complex unconventional strategies such as hedge funds (or absolute return funds) and private equity funds.  The main reason to invest in alternative assets is diversification i.e. to seek an alternative source of return, ideally a source of return that has a low correlation with the return from equities.

In CERS we have increased our allocation to alternative assets over the last number of years. Members have exposure to alternative assets by investing in the Default strategy.  The CERS Multi Asset Fund is a highly diversified balanced fund and members can also invest directly in the CERS Alternative Asset Fund.

John Geraghty, Pension Consultant, Construction Executive Retirement Services (CERS)

Planning for the Future

As in life, there are many variables and changes. Planning for retirement and protecting your financial future involves forming expectations about income and expenses over the rest of your life, based on present assumptions. As the pension administrator for pension schemes in the construction industry, we have a range of solutions to help you prepare and protect your future investments. Whether you are self-employed, running a large company with multiple staff requirements, looking for life and income protection, we can help.

For more information and to find the right solution for you, contact our team for a no obligation discussion. Our team of financial specialists will put you in touch with the right team member. No obligations, no hidden fees, no jargon – just a straight forward chat to help you secure your present and your future.

Contact us via email (info@cpas.ie) or by phone (01) 223 4949

This article provides a summary and is for information purposes only. It does not constitute advice or a recommendation and it does not take into account your knowledge, experience, investment objectives or financial situation. You should always consider taking independent financial advice when reviewing you investment choices

We all know the many good reasons to contribute to a pension arrangement – but when setting up a pension plan or reviewing your current arrangement, what is important? In this edition of Irish Building Magazine, we offer five points that we believe you should always consider.

Will the pension plan meet your needs? The most important place to start is at the end! When you actually approach retirement and want your pension to start paying out (instead of you continuing to pay in), will your pension provider meet your requirements? Do they offer you a lifestyle investment option nearing your retirement to help you to lock in your gains?

If you decide to choose the pension route, do they offer competitive annuity rates at retirement? If you wish to take a retirement lump sum and transfer to an ARF/AMRF, can they facilitate this themselves or through a partner? The time to find these out is at the very start!

  • How much are you paying in charges? Charges are deducted from your pension fund to cover a whole range of services, including administration, fund management costs, trustee costs and 3rd party adviser costs. These are typically bundled together to make them easier to understand and simpler to apply. Charges can have a significant impact on your pension fund. They are necessary for the effective running of a pension scheme, but should be kept to the minimum possible. Beware of funds with many layers of charges, which are complicated to understand. You should always veer towards pension plans with very transparent charges that are easily understood. After all, it is your own pot of money that is being reduced by these charges!
  • Investment choices: Your pension arrangement should offer you a diversified range of investment options that can meet your changing circumstances over time – this doesn’t mean that there should be hundreds of funds to choose from – but the options available should cover all the asset classes, i.e. Equities, Bonds, Cash, Property, Alternatives etc. and should be sufficient to offset the main investment risks. The Pensions Authority suggests a choice of between 5 to 7 funds. Almost 85% of members generally choose the default option, so it is vital that if you choose this option it is suitable for your needs and your ultimate retirement goals. Any fund choices you make should be based on the level of investment risk you are comfortable with and should take into account your financial circumstances and goals.
  • Good service from an experienced pension provider: It should be a given that your pension provider has the required experience and the systems in place to administer your arrangement in accordance with all the regulatory requirements. Nevertheless, you also need to be confident that they have the quality people and processes to provide you with the information and services you need in a timely manner. So before you take out a pension plan,ask the necessary questions to get a sense of the service you can expect – What online access to information is available? Are they flexible to meet your needs? What qualifications do their staff have?
  • Security and Governance: Another of the most important features of pension arrangements is that the money invested on behalf of members is kept completely separate from the company’s own money. It is only there for the members when they retire, and cannot be accessed by the employer or a creditor if the company should run into trouble.

Many employers appoint what is called a “Corporate Trustee” to oversee the management of their pension scheme. This offers an important additional layer of independent protection for employers and employees, and removes the burden from employers of being a Trustee themselves, or hiring a company to provide this service. When choosing or reviewing your pension arrangement these are some of the points to consider but ultimately, the aim of your pension is to provide you with an adequate income in retirement to allow you to maintain a good standard of living.

 

Planning for the Future

As in life, there are many variables and changes. Planning for retirement and protecting your financial future involves forming expectations about income and expenses over the rest of your life, based on present assumptions. As the pension administrator for pension schemes in the construction industry, we have a range of solutions to help you prepare and protect your future investments. Whether you are self-employed, running a large company with multiple staff requirements, looking for life and income protection, we can help.

For more information and to find the right solution for you, contact our team for a no obligation discussion. Our team of financial specialists will put you in touch with the right team member. No obligations, no hidden fees, no jargon – just a straight forward chat to help you secure your present and your future.

Contact us via email (info@cpas.ie) or by phone (01) 223 4949

CPAS - Pension Administration Services
If you are self-employed, you will more than likely be relieved that the tax deadline has come and gone again. Accountants have been paid, all expenses have been gathered and many of you have made pension contributions to reduce your tax liabilities. Everyone has now hopefully closed off their 2017 tax liabilities and the self-employed have made preliminary payments for 2018. If you are an employee in a pension scheme, your chance to make a backdated Additional Voluntary Contribution (AVC) for 2017 has also passed. 

The one thing you can be certain about is that the tax/pension deadline will appear again in 2019, and you will face the same challenges of paying your tax bill and looking for ways to reduce it. Making lump sum pension contributions is a great way of reducing your tax bill, but it also can be a significant drain on your cash flow. Furthermore, as an employee, you may also be leaving it to the last minute to make an AVC.

There is a better way…

Rather than face that cashflow drain trying to come up with a lump sum pension contribution, it makes far more sense to spread the pension contribution throughout the year. Starting now… right now.

Here are three good reasons why it makes a lot of sense to make regular, smaller pension contributions throughout the year rather than one big payment at year end.

Easier on cashflow
Everything is easier when we save for it. Whether you are putting a few euro aside planning for Christmas expenses, saving up for your summer holiday or indeed making a big purchase such as a new car or home improvements, saving for these always makes life easier in the end. The exact same principle applies to your pension.

Making a regular contribution amount every month (for example say €1,000 per month) is far easier than coming up with €12,000 at the end of the year, particularly as you may also have a tax bill to pay then! After a while of paying a regular amount out each month, you simply begin to notice it less and less as it becomes like another regular outlay. As a result of more money going out each month (but remember it’s going to you!), you are also much less likely to simply waste any surplus cash left over each month.

Finally, the good news too is that if you hit a blip with your cashflow, you can always take a break for a month or two from your pension contribution.

You’re paying yourself first
When you leave your pension contribution to year end, the amount tends to be driven by available funds at that point. All of your other expenses are paid at this stage and your tax bill has been looked after. Your future financial happiness that is achieved by your pension contribution is last in line – it is decided by what’s left over!

Starting today to make that regular pension contribution puts you at the top of the queue. This is known as automatic saving as it simply happens each month, rather than you having to actively do something each month. You’re the first person looked after, and not the last. Money goes into your pension fund each month, increasing your own future financial firepower.

Maximise investment potential
There are advantages to making regular or monthly pension contributions. The first is you will enhance the value of compound interest. We already know that compound Interest is beneficial, due the exponential value of interest on interest.

If we go back to the earlier example of €1,000 per month Vs €12,000 at the end of the year – consider this – for the first 6 months anyway, there may have been interest or growth on each €1,000 invested, adding greater compounding value than to the €12,000 in a lump sum.

This also works another way however. We know that when investing in the markets there are fluctuations in value up and down over the course of the year. Regular contributions may invest in both of these scenarios and consequently purchase more shares or units in the year (increasing value) than a once off lump sum.

Today is the time to act! Set up that regular pension plan and look after your most important financial challenge – your future happiness. Whether you are self-employed or an employee looking to boost your retirement funds, CPAS has a solution for you.

Planning for the Future

As in life, there are many variables and changes. Planning for retirement and protecting your financial future involves forming expectations about income and expenses over the rest of your life, based on present assumptions. As the pension administrator for pension schemes in the construction industry, we have a range of solutions to help you prepare and protect your future investments. Whether you are self-employed, running a large company with multiple staff requirements, looking for life and income protection, we can help.

For more information and to find the right solution for you, contact our team for a no obligation discussion. Our team of financial specialists will put you in touch with the right team member. No obligations, no hidden fees, no jargon – just a straight forward chat to help you secure your present and your future.

Contact us via email (info@cpas.ie) or by phone (01) 223 4949

CPAS - Pension Administration Services

We were delighted with the success of the ‘Opportunities for Construction Companies 2019’ breakfast briefing we hosted at the Red Cow Moran Hotel, on 21st November last. The breakfast briefing, chaired by businessman Bobby Kerr, included speakers Oliver Mangan, Chief Economist, AIB; Terry McAdam, Management Consulting Partner, RSM; Mark Lohan, Managing Director, Brooks Group; and Jeanette Mair, Economic and Policy Research Executive, CIF. 

Opening the presentations, Jeanette Mair, CIF, discussed the €7.3bn in capital investment in 2019 boding well for the construction sector as well as the employment trends in the industry.

“Capital investment in 2019 will be 23.6% greater than it was in 2018,” she said, “and the amount allocated is broadly in line with the overall allocation set out in the National Development Plan (NDP) for next year.”

Jeannette also said that according to the Labour Force Survey by the CSO, nine out of every 10 jobs lost since the crisis have been recovered and one in every 15.5 jobs in Ireland is in construction.

Before providing helpful steps to improve construction prospects in 2019, Jeanette gave an insight into housebuilding and Capital Projects in Ireland as well as the drive for innovation in construction as part of her address.

“2019 is all about improving construction productivity, the construction industry has the biggest appetite for change and embracing technology”

She also reported that initial research findings by the CIF point to productivity improvements being driven by digital trends, labour shortages and efficiency gains.

Oliver Mangan, AIB, provided the economic outlook for 2019 with Brexit being the central theme.

He said that economic indicators remained upbeat and the unemployment rate was falling to 5.4% in 2018. He added there was still much uncertainty about Brexit and it is expected to lower the growth rate of the Irish economy. ESRI estimated that Irish output would be reduced over time by 2 – 2.5% on a soft Brexit and a sharp fall-off in trade with the UK would be likely on a no-deal, hard Brexit.

Terry McAdam, RSM, outlined the key challenges the construction industry may face in 2019 such as tight contract margins, managing operational contract risk as well as addressing the skills shortage and explained in his presentation how Lean may help businesses going forward.

“Lean being the form of continuous improvement,” explained Terry McAdam, “focuses outwardly on being flexible to meet customer demands and inwardly focused on waste and cost reduction in all processes.

“If you want to get involved in Lean methodologies, start with small steps.”

Terry introduced the 5S method as the early steps a company can take to reduce waste and improve productivity through maintaining an orderly workplace – Sort, Straighten, Shine, Standardise, and Sustain.

The final speaker of the morning, Mark Lohan, Brooks Group, looked at the sector as a percentage of GDP growing from 8% this year to 12% in 2023, underpinned by a number of Government-backed plans such as Rebuilding Ireland and Project Ireland 2040.

The insightful morning concluded with a panel discussion and concluded with questions and answers. The one issue that continued throughout the discussion was the importance of a skilled workforce and the sectors ability to attract the right people to deliver on future plans.

At CPAS, we see many facets of this complex issue of retaining and attracting key staff. While companies sometimes focus on salaries alone to attract employees, CPAS has helped many employers design a complete benefits package including Income Protection and Pension Savings to help retain and recruit skilled employees. Employers who invest in their people will have greater success, and CPAS has pension and benefit consultants available to meet employers and discuss a package that could give them the edge in this area.

You can talk to one of the team at CPAS by calling 01 407 1400. To view copies of each presentation please click here.

In her latest article, Susan O’Mara of Milestone Advisory highlights the importance of having a benefits package in place can have in retaining key staff or attracting new staff.

Susan writes, the “2018 National Skills Bulletin”, published by SOLAS, makes for interesting reading if you are running a company; you need to know what is in store for the labour market in your sector.

If you are a parent with kids pondering their choices for the CAO – it is also worth a read. It may give you an idea what of skills will be in demand when they are ready to enter the workforce in 2023 – 2025.

It may not be news to you that there are skills and labour shortages in the construction sector and that those shortages are for both professionals such as project managers, quantity surveyors and for trades people and general operatives. Considering this, it becomes all the more important that you have a competitive reward package in place in order to retain the key staff and attract high quality new staff.

There are thousands of scholarly articles online on the topic of how to attract and retain staff. They cover the hiring process, the efficacy of the people managers, training and overall work environment.

Finally, there is salary, which is the focus of this piece. While a competitive salary is important, it is not always the most important deciding factor for employees – so much as the overall benefits package is. The overall benefits package may include membership of a pension scheme, life assurance, health insurance and income protection. It may offer all or a combination of all, depending on the employees requirements.

What is included in a benefits package?

Along with salary, this usually includes an occupational pension scheme, into which an employer makes a pension contribution for their employee and most often, so too does the employee. Schemes can be designed to provide similar contributions for all staff, or, to reward experienced staff. One scheme does not necessarily have to have the same rates for all employees.

More often than not, there will be life insurance, also known as death benefit or death in service. This pays out a lump sum to the dependants of an employee on their death while an employee of the company. Once again, there are varying levels of cover and you can arrange different levels of cover, for different categories of staff.

Another cover that employees seek is health insurance, with new types of corporate cover popping up all the time. These provide tradition health insurance with added employee assistance programmes and employee wellness programmes.

My personal favourite benefit is income protection. Should you find yourself unable to work due to illness or injury during your career, who would pay your bills? Not your medical bills, but your ordinary living expenses? Your mortgage, utility, and such like. Income protection provides real peace of mind for employees around this. Furthermore, it is about 60% cheaper for an employer to provide this benefit under an employer sponsored arrangement than for an employee to buy an individual policy directly from and insurance company.

A fit Fit-for-Purpose Package

Having a benefits package in place is a good starting point, but is it fit for purpose? Does it suit the demographic of your workforce? A single 25 year old might be less interested in life assurance than a 40 year old with a young family. Neither the 25 year old nor the 40 year old may be enthused by the pension scheme that you are offering if you are not enthusiastic about the fact that you are offering it. You may need to highlight the value in the benefits you are offering, on a regular basis, to ensure that your staff fully understand and appreciate what they have and what it means to them and their future.

For further information please contact Susan O’Mara at: susan@milestoneadvisory.ie or phone: 01-4068020

Milestone Advisory DAC t/a Milestone Advisory is regulated by the Central Bank of Ireland.