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Barnett Waddingham
0333 11 11 222
From 1 July 2014, the humble Individual Saving Account (ISA) became the NISA (New ISA). Corporate ISAs too have seen a steady increase in popularity in recent years, due in part to the restrictions on pension contribution levels, the lifetime allowance and access to savings earlier than 55. However, for employees at every level, ISAs may also be an effective and tax-efficient way to save towards retirement, or other shorter-term goals.

Given your staff turnover or the fact that we are no longer job for life people, it may be that only 15% of your current workforce may actually retire with you. It is an appropriate point in time to offer a savings vehicle that 100% of your workforce can use and appreciate now for reasons not just restricted to retirement saving but for things that matter to them now.

Retirement saving will not be a priority for members of all ages. Our 2015 Generation Why? survey highlighted this clearly: under 30’s rated saving for a pension on a par with saving for a car. This makes the potential for wider use of corporate ISAs more interesting. Their use can help different members meet a wide range of objectives; whether it be younger people saving for a deposit (Help to Buy ISAs coming in by the year end), high earners saving an additional £15,000 where their pension saving is limited to the Annual Allowance, or even those in later life who want a vehicle for wealth decumulation.

Once employers begin segmenting their workforce by age and other variables using GEM, our workplace pensions analysis tool, their employees’ different savings requirements will become clearer. This allows us to build a savings solution which meets the specific needs of each workforce, based on comprehensive, whole-of-market product research. GEM analysis will also help us to design a contribution structure that both fulfils corporate objectives and helps members obtain maximal value from their benefit package.

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