NFP favours retention of age related contribution rates
NFP is a leading global business with over 7,000 employees worldwide, including over
300 in Ireland and the
UK, focusing on employee benefits, pensions, HR, wealth management, and insurance services. The firm has been ramping up its presence in Ireland in recent years, and has acquired a number of broker intermediaries.
NFP’s approach is to cut through the complexities around company pensions and employee benefits, says
Colm Power, Director at NFP Ireland. “We identify pain points and solve problems for our clients rather than just selling products,” says Power.
“We act as the single point of contact for the employer and their employees, and manage the day-to-day running of their pension and wider employee benefits strategy.”
Power notes that pensions are seen as a major component of an employee’s total compensation package and can often be a deciding factor in attracting or retaining that key talent.
“We cut through the red tape
and guide each client so they are structuring their benefit package and company pension in line with their peer group, to make sure that they are not only competitive but providing the right support for their specific workforce.”
Power insists that NFP Ireland offers advice on the whole market instead of just one specific market offering. “The ability to compare and contrast the providers on their various strengths and weaknesses is something that we strongly advocate,” Power adds.
“As a benefits broker, NFP ensures that the client is given access to all the available providers so that we can secure the most competitive terms available for them.”
In Power’s view, there should be no tinkering with agerelated contribution rates. “When we review the data on pension engagement in the UK after the change was introduced there, we know it has had an adverse impact on pension funding,” he explains.
“Historically, Irish people leave their pension funding to later in life, and the agerelated contribution rates allow people to catch up on missed years. The current salary cap of €115,000 ensures that perceived high earners cannot have an unfair advantage over everyone else.
“Until auto-enrolment has been rolled out and is proven to be working efficiently and effectively, any intervention to the current tax reliefs and contribution rates would be hugely damaging for all pension holders.”