Platform maze

8th September 2010

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.

Please see Pensions Insight to read the article in full.