Because many employers arrange a pension or provident fund for their employees, these are often called group benefit schemes. In addition to retirement investments, the employer may offer funeral insurance, medical cover and disability cover. Group benefits work because all of the participants contribute to the benefit scheme. If each person was contributing individually, the costs could be a little higher than if the group is saving together.
These benefits are normally provided by an insurance company and not by the employer. Once a year each employee will receive a benefit statement that provides details on their benefits.
If you have a retirement investment or are part of a group benefit scheme you will receive a benefit statement once a year. This statement is a very valuable source of information and you should read through it to get a better picture of your financial standing.
Your benefit statement will contain the following information:
Remember to review your benefit statement every year to make sure your details are correct and that the right beneficiaries are listed.
