Corporate Wrap – Future of Employee Benefits?

[ad_1] With the demise of final salary pensions, company pension plans are no longer seen as a key employee benefit. The focus has shifted to other employee benefits, particularly flexible benefits as a way of attracting and retaining employees. And now the Corporate Wrap is being hailed as the ‘next big thing’

There are, however, differing views on the subject – including the ‘pros and cons’- and just a handful of players in the market so far with more to follow and further developments to be made. So, what is the corporate wrap?

Some would argue that a more accurate description would be a ‘corporate platform’. The word ‘wrap’ is taken from the IFA market, but the key differentials are the area of advice and that the corporate wrap is centred around workplace benefits as opposed to retail. It has a set of product wrappers that might include a DC pension, Group SIPP, possibly a retail SIPP, ISA, share save, and SAYE with the ability to transfer between wraps – and it should extend further than this to include protection, healthcare and flexible benefits. This will enable employees to make the most of their benefits, presented in a clear concise format, encouraging them to take action and control of their wealth and engage further with their employer. Eventually one would review the ability to transfer across legacy pensions, savings, even debts, therefore providing a complete overview of an employee’s financial situation.

Where are we now?

Scottish Widows entered the market early last year with its platform ‘mymoneyworks’ comprising a pension, ISAs and cash saving options where employees can make use of the platform even if they don’t take up the pension. It has a ‘reality check’ where employees can analyse their financial health and priorities are highlighted as high, medium or low risk. There are tools and calculators to check income and expenditure and identify where employees could free up money for savings and so on. Also available is financial information in relation…

Sourced from by Zoe Priselac

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