A workplace pension or a corporate pension is a way of saving money from your salary for your retirement that is basically arranged by your employer or basically the corporation that you work for.
It maybe that you are young and near the start of your working life and retirement may seem a long way off but believe it or not, time flies by quickly and very soon you may have been in your workplace for over twenty years, or you are simply five years away from retiring. No matter what stage of work you are at, or whatever your retirement plans are, it is inevitable that you will require a regular income to help support you and your family after you finish work.
It is important that you consider your final needs and long term goals for retirement quite early so as to have a better chance of achieving them. Considering the economy, one of the most tax efficient ways by way of which you can save for your retirement is to join a corporate pension plan, for instance like the many Pension Plans UAE
The earlier you start saving for your retirement, the longer you can invest your money and the greater the chance of it maturing. With the lack of government and corporate pensions, more and more people are getting concerned by the day. Consequently, each day more and more individuals are being forced to take matters into their own hands so as to ensure that they are covered for their retirement and do not face any financial trouble during their old age.
In the future, if the account holder were to meet death, then the amount of money in the offshore pension would go to the beneficiaries as listed by the account holder and not a single dime of it could be taken or controlled by pension rules or the government.
Doesn’t an offshore corporate pension plan sound great? So not only does an offshore pension solution offer greater complete tax free maturity for your fixed deposit, but it is also flexible and in the event of death, the asset can be passed onto an enlisted individual.
How do corporate pensions work?
The way that any corporate pension works is that certain percentage or amount of your monthly pay is automatically deposited into the pension scheme on every payday. In most schemes, your employer or the company also adds a certain amount of money into the pension fund for you, and the government exempts your pension fund from tax.
How does Life Insurance work?
A life Insurance, in layman’s terms, serves as a source of income for your family in the event of your death. In the case of most Saudi Arabia Life Insurance schemes, it covers most mortgages just so that your family isn’t left with a huge debt in their hands. It also provides for your children’s educations and any long term academic purposes.