Mercer | 1e-plans: Opportunities and risks for employers and employees

1e-plans: Opportunities and risks for employers and employees

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1e-plans: What are the opportunities and risks for employers and employees?
1e-plans: What are the opportunities and risks for employers and employees?
Calendar07 November 2017

EMPLOYERS

Opportunities Risks
Attractive, modern pension solution (e.g. via electronic platforms) Multiple pension plans require more administrative outlay

Limitation of risks (investment risk, life expectancy, etc.)

Increased need for communication

With the right structure: no valuation in connection with international accounting

 

Access to professional investment advice

Only a small portion of the assets is invested in this way.

 

EMPLOYEES

Opportunities Risks
Individual management of own pension assets is possible Investment losses must be borne personally

Choice of investment strategy adapted to personal circumstances (age, risk appetite, etc.)

Untimely withdrawal from the investment vehicle (unless pension fund enables transfer of securities)

Greater transparency (costs of investment vehicles)

Higher personal administrative effort

Performance belongs solely to the insured person

No pension guarantee

Increased potential for purchase of additional pension benefits Choice only between the investment strategies/vehicles offered by the pension fund
Access to professional investment advice Only a small portion of the assets is invested in this way

 

  Contact
We are happy to help you with all aspects of your planning and implementation of 1e plans. Our specialists look forward to hearing from you. Please fill in the form provided and we will contact you as soon as possible.
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