Pensions

GAEIA can help you set up a new scheme or advise if an existing scheme meets the new legislation. We can also advise on pension transfers.

We can help you and your employees choose the best pension providers, based on their financial strength and choice of funds that offer good, long-term performance, including ethical options.

We are experts in ethical and environmental investments, which are becoming more and more popular with employers and employees alike.

From 2012, all companies will have to enrol employees in their pension scheme and provide a minimum employer contribution of 3% with the employee contributing at least 4%. While matching employees’ contributions is not compulsory at the moment, it is good practice and encourages workers to start a pension. The final details of the above could still be subject to change by the government) This level of payment is very low and is unlikely to provide sufficient income in retirement, we believe good employers should not wait until this date, it is important that you and your staff start to make adequate retirement provisions now. 

Group Personal Pensions

Group Personal Pension (GPP) Schemes are personal pensions that are grouped together to make them easier and cheaper to administer. They are simple to run and can be administered over the internet.

GPP schemes have a number of advantages for employer and employee. For employers, there is less paperwork than for occupational schemes and the pension provider deals with it rather than you, the employer.

GPP schemes are flexible, allowing business and staff to decide what level of contributions they make and how these contributions are invested.

For your staff, GPPs allow them “ownership” of their pension. If they move jobs they can take their pensions with them.

How much to save?

The National Association of Pension Funds says that, as a rule of thumb, workers should put 15% of their earnings over their working life into a pension, to receive a pension of two-thirds of final salary.

It pays to start saving as soon as possible. According to www.planyourretirement.co.uk , a 25-year-old man earning £25,000 a year who pays 5% of his salary into his pension with his employer making a 10% contribution, will have a pension pot of £360,145 by the time he is 65, which translates into a pension of £29,532, assuming a growth rate of 5% per year.

A 35-year-old man on the same salary would accrue only £213,216, or £17,484 per year, while a 45-year-old on the same salary and making the same payments would have a pension of just £9,309 a year.