Article date: 8 November 2010
Aviva is launching a salary exchange calculator for advisers. Available on the Aviva for Advisers* website, the calculator helps advisers demonstrate the benefits of salary exchange to clients.
Salary exchange – also know as salary sacrifice – involves employees trading part of their salary or bonus in exchange for a pension contribution from their employer. Employees and employers pay lower income tax and National Insurance contributions and many employers re-direct National Insurance (NI) contributions into their employees’ pensions to boost retirement savings.
With National Insurance contributions increasing in April 2010 (and again in 2011), salary exchange is becoming increasingly popular with both employers and advisers.
- Comprehensive input fields that make it easy to capture information reflecting a variety of client circumstances.
- Before and after scenarios highlight the benefits for employees and employers.
- Tool to illustrate effect of passing employer saving to employees (0–100%).
- Production of letters for employees agreeing to salary exchange.
- Production of personalised reports explaining how each member is affected by salary exchange.
Paul Goodwin, head of pensions at Aviva, said: “Aviva understands how difficult it can be to put away enough money to enjoy a comfortable retirement and salary exchange can help employees potentially invest more into a pension, afford to retire sooner and achieve a higher tax-free cash lump sum.
“Salary exchange is a tax-efficient way of maximising contributions into pension plans and with increases in National Insurance, it has become a major feature where an adviser can add value for his client. Aviva’s salary exchange calculator and support material can help the adviser demonstrate the benefits of salary exchange and set-up strategies for employers, and we believe that Aviva’s new tool is the clearest and most user-friendly in the market.”
About Aviva for Advisers
*Aviva for Advisers was launched in June 2009 as part of part of a strategy to provide advisers with a market-leading e-commerce platform. The website provides clear information in a simple format and access to product, tax and technical support information and gives advisers access to more than five million Aviva policies. www.aviva.co.uk/adviser
For further information, please contact:
David Gwyer 01904 452659 07800 693187 firstname.lastname@example.org
Notes to editors:
- Aviva is one of the world's largest insurance groups* with 53 million customers worldwide and 46,000 employees.
- Aviva’s main activities are long-term savings, fund management and general insurance, with worldwide total sales of £45.1 billion and funds under management of £379 billion*.
- In the UK, Aviva takes care of its 19.2 million customers by helping them look after their future, protecting what’s important – from their health to their homes, their cars to their business – and saving for the future.
- Aviva has a 10.5%** share of the UK life and pensions market and insures one in six homes and one in 10 cars in the UK. It is also one of the oldest UK insurers, with a heritage stretching back more than 300 years.
- RAC, which is owned by Aviva, provides breakdown and insurance services for individuals and businesses and has around seven million customers.
- Aviva is carbon neutral worldwide, and is ranked in the top 10% of socially responsible companies globally by the Dow Jones Sustainability World Index. In 2009 we invested £3.8 million into the community. Read our corporate responsibility report at www.aviva.com/cr
- Aviva’s global Street to School programme is working in partnership with Railway Children in the UK to get children living on the streets back into education and everyday life. Find out more at www.aviva.co.uk/street-to-school.
- The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.
- For broadcast-standard video, please visit www.aviva.com/media/video/.
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* Based on gross worldwide premiums at 31 December 2009
** Source: ABI data released August 2010