SMEs urged to get more involved in pension schemes

By Saturday May 13th, 2017 Investment

Experts say SME schemes could help companies retain employees and boost economy

SMEs urged to get more involved in pension schemes |

Dubai: Small and medium-sized enterprises (SMEs) in the UAE are urged to get more involved in pension schemes.

There are “far too few” SMEs in the country that offer pension schemes, Guy Dugan, chief investment officer — wealth management at Emirates NBD, said on Monday on the sidelines of a session called SME Pension Fund, organised by the CFA Society Emirates. This is partly because “ the regulations don’t force you to do it,” he said.

“A lot of people from abroad that are used to seeing pensions as part of their packages come here and think ‘well, I get a good salary and it’s tax free here then everything is fine, and I don’t have to worry about it’ but the environment is changing,” he added.

There are a number of advantages for companies that offer pension schemes to their employees, such as retaining staff and reducing companies’ costs. Bobby Rakhit, chief executive of Inside Consulting, said that creating an umbrella scheme for SMEs also helps the economy.

Dugan expects more SMEs in the country to get involved in pension schemes in the future, with “the encouragement of the government in order to try to ask companies to set aside at least some of the assets required to meet future liability.”

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