Company pensions are created by employers to help employees provide for their retirement. They create tax efficient salary deduction processes that positively contribute to the employee’s future.
Very often the employer also contributes to the employee’s pension pot by making a like-for-like payment each time the employee does so.
The motivation of an employer often comes from a number of avenues. For example, the provision of a pension scheme is often an important factor in attracting talent to your company.
An employee may be motivated to choose to work with one company over another based on its pension provision.
Another motivating factor is to reward existing employees and give them a tangible benefit to remain working for the company. The employee feels appreciated and acknowledges the employer’s efforts to provide for their financial future.
A third benefit to the company is in the form of tax incentives that benefit the employer and allow them to make employees.
If you would like to learn more about setting up a company pension is then click here.