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MAC Smart Pension launched

Island financial advisor MAC Financial has launched a new approach to pensions in a bid to save employers and employees National Insurance contributions.

Following the recent introduction of a further one per cent rise in National Insurance contributions and the UK Government’s recent announcement of another 0.5 per cent increase for 2011, it’s introducing its MAC Smart Pension.

It will give employees the opportunity to increase their take-home pay, whilst not affecting any other benefits and decreasing employers National Insurance contributions by up to 12.8 per cent.

The Isle of Man has already announced the one per cent rise so there could be further costs to come if the Department of Health and Social Security follow suit with the UK Chancellor’s Pre Budget Report proposal.

MAC Financial managing director Jon McGowan said: ‘The MAC Smart pension is a form of salary sacrifice and, as a concept, has been around for many years. However, the different approach MAC’s Smart pension offering takes, together with clarification from the appropriate authorities, means that many of the previous drawbacks of salary sacrifice arrangements have been overcome. The important point is that MAC Smart will work with your existing pension scheme.’

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