Millions of employees don’t realise they’re not on track for the retirement they dream of.
We’ve redesigned pension guidance from the ground up to make it friendlier, simpler and more exciting for everyone to engage with.
Why is pension planning so important?
Pensions are key to long-term financial security. Every pound you put into your pension goes further when you take into account tax savings, long-term investment and (in many cases) free money from your employer.
We know it’s not always possible to think about your pension when you have more immediate financial worries.
But not thinking about pensions makes it easy to sleepwalk into a very difficult future.
So while coaches help employees focus on one thing at a time, their primary goal is to guide and educate on the long-term impact of financial decisions.
How do we provide pension guidance?
Everyone’s circumstances and goals are different. But while coaches will work with employees holistically, retirement is the one mandatory goal everyone must build into their plan. After all, we all want to retire at some stage.
Our coaches will always provide guidance on employees’ pension arrangements, how much they should contribute, when they should increase these contributions, and show them the impact this will have on their retirement goals.
They will also advise on general financial and tax issues related to pension arrangements, like showing the difference between putting money into a pension and leaving money in a savings account.
Plus, for every single change an employee wants to make with their money, our clever planning technology will show them how it might impact their situation at retirement.
Is this why employees don’t pay tax on long-term financial planning?
Yes! The government really wants people to plan for their retirement. And so, since 2017, they’ve allowed anybody to pay up to £500 per year for pension advice, from their gross salary.
We won’t bore you with all the details, but HMRC’s exemption “applies to the provision of information or advice in connection with the person’s pension arrangements or the use of the person’s pension funds. It can include advice on general financial and tax issues relating to pensions arrangements or pension funds allowing individuals to make informed decisions about saving for their retirement.”
Can employees pay via salary sacrifice if they don’t want to discuss pension arrangements?
No – and not just because we’re pension geeks. It’s because we really care about your employees’ futures.
Our money coaches and advisers are there to educate employees on how to build a secure financial future and that must include a plan for retirement.
That said, coaches will still be able to answer employees’ questions on their short-term finances as part of the holistic planning process – giving you the answers you need, in a way that safeguards your future too.
Octopus Money Limited is an appointed representative of Octopus Investments Limited which is authorised and regulated in the UK by the Financial Conduct Authority. Registered office: 33 Holborn, London EC1N 2HT. Registered in England & Wales under No. 14069098.
Octopus Money is a trading name of TW11 Wealth Management Limited. Registered in England and Wales (No. 10339119). Authorised and regulated by the Financial Conduct Authority. Our Financial Services Register number is 763630.
As with all investing, your capital is at risk. If you choose to invest with Octopus Money, the value of your investments can go down as well as up and you may get back less than you invest.