Pension and Provident Funds
If you are a business owner, investing in the future of your employees can be even more daunting than investing in your own. Your employees’ continued happiness depends on access to pension and provident funds. One oversight in setting up your employees’ pension and provident fund programmes, however, could lead you to compromise your own long-term financial well-being.
LifeSense Financial Services has a wealth of experience when it comes to employee benefit administration and consulting. We can help you choose a pension and provident fund solution that maximises tax efficiency and minimises the financial liability to your company, while still providing your employees with retirement planning solutions that you would be happy to invest in yourself.
Preservation funds are a simple but powerful retirement planning tool. If you have an existing pension fund or provident fund agreement with a company, and decide to leave the company (and thus exit the fund), you can transfer all of your savings from the fund into a preservation fund, without being taxed on the transfer. Your investment will continue to grow as before, despite you having severed ties with your employers, and will be made available upon retirement.
Preservation funds give you the freedom to have a dynamic, unconstrained career, free from concern about your future financial wellbeing being penalised as a result.