What Is a Pension Broker
A pension broker is an independent advisor who helps companies with their corporate pension plans, including health insurance and insurance coverages in the event of illness, accidents, and death. The pension broker works exclusively on behalf of you and your employees, ensuring that the company has the best terms and coverages so that employees are as well-protected as possible.
What Does a Pension Broker Do?
The pension broker is responsible for everything related to a company’s pension scheme.
This includes everything from the initial process of understanding the company’s needs and preferences to finding the best possible pension scheme, assisting with its administration, and holding personal meetings with employees to ensure their pension savings align with their plans and dreams for retirement.
The pension broker will also help ensure that your employees are informed and engaged in their pension scheme while continuously updating them on any changes in pension legislation and within the pension and health providers, so they can fully benefit from the great offer provided by the company.
Once the pension broker has gathered the necessary information, the next step is typically to put the pension scheme out to tender with a number of pension providers in the market, giving them the opportunity to submit a proposal for a corporate pension scheme for the company.
The pension broker then collects and analyzes the received offers and selects the providers that are most relevant to move forward with.
After the pension broker has addressed any questions and completed negotiations with the pension providers, you will be presented with the best offers regarding terms, coverage, and prices, along with the broker’s recommendation.
Why Use a Pension Broker?
The pension world is complex, and it can be a time-consuming and overwhelming task for many companies to navigate the various pension providers' offerings, which can be confusing and difficult to understand.
The companies often have different terms and recommendations, and it can be hard to feel confident that the right decisions are being made regarding the pension scheme when you don't have a deeper understanding of the pension field.
Once the pension scheme is established, it’s important to keep an eye on the pension market and make any necessary adjustments to your pension agreement, as changes in pension providers' terms, new regulations, or changes in pension legislation can significantly impact your pension scheme.
The pension broker is with you every step of the way, from setting up the corporate pension to the ongoing administration and monitoring of the scheme, as well as renegotiating the agreement each time it expires and needs to be renewed.
Many companies manage without a pension broker. However, we recommend always staying informed about what is happening both with the pension provider and within the pension field in general, so that the company’s pension scheme can be adjusted if needed. It’s our experience that most companies don’t have the time for this in a busy workday, which is why they find it a relief to get assistance from a pension broker.
We Often Get These Questions
An independent pension broker is independent of pension providers and works solely in the interest of the customer. In contrast, an insurance agent is employed by the pension provider to sell that particular provider’s product.
A pension broker fees is dependent, among other things, on the level of administration and the number of employees who require advice.
As an individual, you are free to choose which pension provider you want to place your pension savings with. In a company pension scheme, the company typically selects one or more providers to manage employees’ pension savings, health insurance, and insurance packages.
With a pension broker, you receive advice from a broker who works independently of the pension providers and therefore solely in your best interests. If you seek advice from one of the pension providers, the advice will typically be based on that provider's own products.
A pension broker helps companies secure the best possible company pension scheme for their employees. The broker also assists with the ongoing administration of the agreement and provides pension advice to employees.