Daily Insurance Industry News
Daily Insurance Industry News
Thursday 18th of October 2018
November 8, 2010

Aviva launches salary-exchange calculator

by Gill Montia

Story link: Aviva launches salary-exchange calculator

Aviva launches salary-exchange calculator

Aviva is launching a salary-exchange calculator for advisers, which can help demonstrate the benefits of salary exchange to clients.

Salary exchange (also known as salary sacrifice) involves employees trading part of their salary or bonus in exchange for a pension contribution from their employer.

Using the method, employees and employers pay lower National Insurance contributions, with many employers re-directing contributions into their employees’ pensions to boost retirement savings.

With National Insurance contributions increasing in April 2010 (and again in 2011), Aviva points out that salary exchange is becoming increasingly popular.

Features on the exchange calculator include: comprehensive input fields; before and after scenarios highlighting the benefits for employees and employers; a tool to illustrate the effect of passing employer saving to employees; production of letters for employees agreeing to salary exchange and production of personalised reports explaining how each member is affected by salary exchange.

The insurer’s, head of pensions, Paul Goodwin, comments: “We believe that Aviva’s new tool is the clearest and most user-friendly in the market.”


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