Question

Explain what you understand to be the importance of pensions from a business perspective.

Answer 1

Individuals through their lifetime have a desire that a period will come when they will have the option to retire. For certain individuals, the State pension is adequate to give an essential degree of income. Others have a chance to aggregate riches through their business organization or different assets, without utilizing pension schemes. In any case, a great many people will need to enhance what they have with some type of pension scheme. Numerous employers will support that, they ought to develop a qualification to a pension when they retire, while their employees are working.

Pension plans have various points of interest:

• individuals will encounter a decrease in income, when they come to retire. A pension compensates for a portion of this loss of income in retirement
• in case of a member's death, pension schemes can give assurance as singular amounts and pensions to dependants
• the State gives tax relief on commitments made to pension schemes and the development in their investments, so as to empower pension schemes.