Workplace retirement schemes

In a competing labour market, employers are finding innovative ways to help retain their employees − and workplace retirement schemes are a way of building employee loyalty. Here are some common questions to help demystify what this is all about. What is a workplace pension scheme? A workplace pension scheme is a way of saving for your retirement that is arranged by your employer. Some workplace pensions are also referred to as ‘employee’, ‘occupational’, ‘company’ or ‘work-based’ pensions. A workplace pension is essentially a savings scheme that your employer and you (if applicable) pay into, that will help you build your retirement savings. It is also generally intended as a means of supplementing your state pension. The value of the plan is dependent on how much is paid into it through regular contributions over the years, and investment performance. The value of the plan is intended to be accessed upon retirement and withdrawn by way of programmed withdrawals or annuities, so an early surrender would not be possible. Who contributes to workplace pensions? The employer adds money into your pension scheme by way of regular contributions, often monthly. In some cases, the...