8DECEMBER 2023By Dirk Korbee, Finance Director Aegon Retirement Solutions, Aegon NederlandCRAFTING AN EFFECTIVE PENSION SCHEME:THE SIGNIFICANCE OF EARLY ACTIONIn the realm of employment benefits, a pension scheme holds a special place as the most highly regarded secondary benefit among employees. Recent research conducted by both Aegon Cappital and other parties reveals that workers, even those in younger age brackets, recognize the importance of a robust pension plan. Despite dedicating limited time to contemplating their retirement, employees acknowledge the value of this benefit and appreciate employers who prioritize their long-term financial security.In the Netherlands, a new pension legislation, fully effective as of 2028, will trigger a shift towards a single type of pension system known as the defined contribution. This impending change demands thoughtful decision-making, as the transition can significantly impact employees in various ways. Consequently, it is imperative for organizations to initiate the process of designing or revising their pension schemes well in advance. The pension advisor's roleThe evolving landscape of pension regulations necessitates a tailored approach for creating a robust and effective pension scheme. Engaging a knowledgeable pension advisor is crucial. Their role involves analyzing employee preferences and requirements, defining the financial framework within budget constraints, assessing risk appetite, and considering any mandatory requirements from collective labor agreements or industry pension funds. A pension advisor will also assist in selecting the most suitable product to meet the organization's specific needs. Ultimately, the advisor proposes a tailored pension scheme, associated pension provider and ensures compliance with new legal requirements. As a new style pension provider, Aegon Cappital provides pension advisors with extensive tools to assist with these steps. Involve employees in the pension transformation and start on timeThe first step is to gauge employees' needs and secure consensus on the proposed plans. Once employee needs are understood, it is vital OPINIONIN MYDirk Korbee
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