Everyone should have a plan for their financial future, but financial planning for senior executives can be particularly complex

The pension cap

The Standard Fund Threshold (SFT) is likely to be a major consideration for this group.

Significant Assets

Many have significant assets and liabilities outside of their company pension plan.

Time poor

Many are too busy attending to company business to pay sufficient attention to their personal finances.

Rule refinements

Rule refinements such as the pensions cap often fall wholly or mainly on senior employees.

Investment needs

As senior employees generally exercise the Approved Retirement Fund (ARF) investment risk is likely to be an ongoing issue into old age.

Confidentiality

Senior executives are acutely sensitive to maintaining confidentiality regarding their personal finances.

Mercer’s executive financial planning services

Mercer provides a comprehensive financial planning service for senior employees that helps them organise their financial affairs, better understand the options available and make the best possible decisions about their future financial wellbeing.

We can tailor the nature and scope of our executive financial planning services to suit your preferences. Our advice can focus exclusively on company-specific pay and benefits or encompass the entirety of the executive’s financial circumstances and objectives.

Why Mercer?

Mercer is uniquely positioned to offer all-encompassing financial planning advice. Our specialist financial planning team has an extensive range of skills and experience that brings together actuarial, investment, pensions and protection expertise.

As part of a global company employing over 17,000 people worldwide, Mercer is Ireland’s leading pension, investment and employee benefits consultant. With over 40 years of experience in the Irish market, we have a wealth of knowledge, experience and insight enabling us to deliver tailored, results-driven solutions to our clients.

Why should employers support senior executive financial planning?

Providing financial planning advice to senior executives can help them to:

fully and properly value the benefits provided by the company
concentrate on their role within the organisation, secure in the knowledge that they are getting the best impartial advice
transition smoothly from the business with a concrete plan for their finances

Assessing the effect of the cap on pensions

The pensions cap will be an issue for you if you have employees:

With company pension benefits in excess of the Standard Fund Threshold
With substantial deferred pension benefits from other employments that may, together with their company pension, put them over the cap
Who are on a trajectory to exceed the cap before retirement age and have not made plans to address this

If you have employees in any of the above categories or are unsure about whether the cap affects your company, it is important that you take action early rather than waiting for the value of key employees’ pension benefits to exceed the limit.

Steps to take now

Review senior employees’ pension benefits to determine the scale of the issue
Consider how you need to alter your benefits structure to cater for key employees in this position
Ensure that affected employees receive an executive financial planning session so that they know what steps to take

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Meet the team

Our expert advisers focus on you — your personal goals, your aspirations, your financial objectives. Using the latest cash flow modelling software, Mercer will create a personalised lifetime financial plan that will help support you through life’s journey. Let's meet the experts behind Mercer Private Wealth.

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