Did you know that boosting the amount you contribute to your pension pot throughout your working life could make you nearly £100,000 better off by the time you reach retirement?
The Sunday Times recently quoted figures showing that if a 22-year-old today contributed 12% of their wages a year instead of 8%, they would be £95,350 better off at the age of 68.
Even increasing contributions from 8% to 10% would leave a typical 18-year-old £47,770 better off by state pension age, according to the figures from insurer Phoenix Group and data firm WPI economics. (You can read more here).
This got us thinking about the many ways that employee benefits can save staff serious money over time. So while short-term gains are always welcomed, taking the long-term view with Employee Benefit savings can put things into a whole new perspective.
Save £1000s on childcare costs
With our Workplace Nursery Benefit, if your monthly nursery fees are £1,000 you can save around £4,200 per year as a higher rate tax payer, and over £2,900 as a basic rate tax payer.
Many working families use childcare from the time both parents are back at work following the birth of a child, until the time their child starts school. And they may also have more than one child.
So over time, the eventual savings from our Workplace Nursery Benefit can be multiples of the annual figure of £4,200, depending on the circumstances.
Find out more about how the Workplace Nursery Benefit scheme works here.
Saving money with Discount Club
Discount Club is an employee benefit that lets people save up to 40% on holidays, days out, entertainment and shopping. The opportunities for savings will vary across times of the year and for different life events, but over time they can really add up.
Discount Club savings come into their own at times like moving house – when staff need to buy new furniture, appliances and household items after they’ve already forked out for a new home and perhaps costly mortgage payments.
Discount Club is handy for other expensive times in life, like getting married or having children, where sizeable expenditures may be coupled with the need for extra time off.
Holidays are another big expense in people’s lives, and these tend to come around every year. The Discount Club can be a helping hand, offering savings on holidays and hotels around the world.
Discount Club can also save money during other special times, like Christmas, birthdays and the school holidays. Cinema tickets and savings on days out to places like Alton Towers and Madame Tussauds are popular parts of the scheme.
For shopping all year round, the Discount Club offers 30% reductions in high street stores, rising to 35% for online purchases. There is no limit to how many times the benefit can be used.
It’s clear to see how an employee who regularly uses the Discount Club benefit can save themselves thousands of pounds across the years of their employment with you. It’s easy to use and start saving: Find out more here.
Salary sacrifice benefits
Employees can save on a host of different everyday expenditures by using salary sacrifice. This means the cost of the item or service comes out of an employee’s salary before tax, saving them money and reducing the employer’s National Insurance bill at the same time.
As payments are spread across the year, it also lessens the financial impact of big purchases. Here are a few popular salary sacrifice schemes.
Cycle to Work
Staff can save tax and NI on their bike, up to 47%. Bicycles, e-bikes and equipment can be a significant one-off cost, but the added benefits are reduced commuting costs for the employee and potentially a healthier commute too. The benefit can be worth £100s depending on the value of the bike and equipment, and it can be used more than once across their working life.
Will Writing Service
People are often put off getting a will done because it doesn’t feel urgent, but also because of the costs involved. Our Will Writing benefit lets them spread the cost of a professional service across the year, and they’ll also pay less as it’s taken out of their salary before tax.
More salary sacrifice schemes
Other popular money-saving benefits are the car lease benefit, gym membership, technology benefit and mobile phone benefit. They work in similar ways to the schemes above and typically also have the added benefit of removing the need for credit checks.
Calculate overall savings
Over time, if staff are taking advantage of a number of benefits each year, they could be thousands of pounds better off. But don’t just take our word for it.
Our Benefits Savings Calculator lets users enter the amount they’re typically spending each year on things like childcare, mobile phone services and gym membership. Input the monthly sum into the calculator and see how much savings there are to be made from all the combined rewards across a year.
Multiplied over several years, it becomes clearer than ever just how valuable employee rewards really are.
Try the calculator: Click here
Summary
Staff benefits are one of those wonderful things in life, where everyone wins. Employees save money by taking up the benefits which most closely match their lifestyles, and employers save too. For every £1 spent, employee benefits save a business money in National Insurance savings.
Employee reward schemes like Workplace Nursery Benefits, Car Lease Benefit, Cycle to Work and Discount Club can save an employee thousands of pounds each year. Over several years, the savings can add up to significant sums of money.
Get in touch with us if you’d like to find out more about our staff benefits and how easy it is to get started with our easy-to-use web-based services. We offer a flexible range of benefits and employee queries are dealt with in a day.
About Us
At Enjoy Benefits, we have great experience in helping companies of all sizes introduce benefits that are suitable for their workplace.
Benefits are easy to set up and ongoing administration is then run through a hub, allowing employees to manage their own benefits while the employer can see which benefits are proving popular and what level of take-up each has had.
If you would like an obligation-free chat to discuss which benefits might work for your business and your employees, please contact us by calling 0800 088 7315 or using our Contact Form.
Ready to start working with us?