Personal Pensions And Incentives
Posted on 24. Feb, 2009 by admin in General
Incentives are a part of our lives in many forms, and they are here to stay. They are a form of compensation, or reward, or encouragement gift if you prefer, given by employers to those who accept to undergo a pension transfer; moving to a personal pension plan. The incentives offered are usually some cash payments, or some optimized transfer value. This is a rather controversial issue. It is not illegal to offer incentives to someone so as to persuade him to change his pension plan. It is not even a contravention of laws or regulations. The question to ask is if it is moral or not, but this is something too vague and too hard to define. In any case, it is quite evident that this kind of pension transfer is rarely a win win situation for both employees and employers. Employers have their businesses to run and they will do it in the most beneficial way possible. As for the employees and the schemes’ members, they should seek the advice of someone who knows better. Getting free pension advice is not hard today, and it is absolutely necessary if you want to ensure a solid old age pension plan for the years to come.