Corporate platforms are a powerful tool for employers wanting to offer their employees more than a pension.
Even within a single company there is likely to be diversity in employees' requirements from
the platform.
Jonathan Watts-Lay of platform providers
Wealth at Work says: “There are likely to be different employee groupings within
the workplace – so flexibility is key."He gives the examples of senior executives reaching the
limit of their pension allowance who might want to access other forms of tax-efficient savings such
as an ISA. In contrast, a new, young employee is likely to have different savings needs – such as
paying off student debt, or saving for a deposit on a house – that can also be met by the corporate
platform's range of savings options.
Watts-Lay also points to corporate platforms as a way of encouraging a better
all-round savings culture. “The whole notion of getting young people saving is a good thing. But it
needs a realistic approach, and has to help people look at their short, medium and long term
savings goals."Short term objectives could be a house deposit and could be achieved with a product
such as a cash corporate ISA or a Save As You Earn (SAYE) scheme. Mid-term savings might look at a
5 to 15 year timeframe using a stocks and shares ISA or a share scheme in the workplace. It could
also incorporate a long term incentive plan for executives, for example. A 15-year plus savings
goal might be best suited to a more traditional pensions structure.
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