Many small businesses do not set aside for occupational pensions

According to new calculations from Länsförsäkringar, 4 out of 10 entrepreneurs do not make any occupational pension contributions to owners or employees. This can have major consequences later in life, as those who do not have an occupational pension generally receive a significantly lower pension and miss out on many important protections.

Occupational pensions are a complement to public pensions and private pension savings. Occupational pensions are very important as they can amount to almost half of the total pension. Working without an occupational pension can lead to a much lower pension when you stop working. In addition, occupational pensions include health and survivors' insurance to protect against long-term illness, accidents and death.

Despite the importance of occupational pensions to overall pension provision, 41.4% of small businesses (1-20 employees) lack occupational pension provision, according to a recent calculation by Länsförsäkringar in collaboration with the consultancy Arkwright. Among trading companies, the figure is 52.2%, and among sole traders, as many as 63.7% make no pension provision.

The failure of so many small business owners to invest in their retirement and their future may be because they feel that pension issues are too complicated and time-consuming to get to grips with. However, occupational pensions don't have to be difficult. Businesses can get a deduction of 35% of each employee's salary to make provisions for occupational pensions. Companies with a collective agreement make provisions in accordance with the agreement. Companies without a collective agreement, on the other hand, need to set up their own occupational pension schemes. Individual employees can make deductions for saving for their own pension. The same applies to self-employed persons.

One way to make it easier for small entrepreneurs to save for their occupational pension is through digital services that simplify and streamline pension saving. This makes it easier for employers to understand and keep track of occupational pensions while significantly reducing administration.

Visit www.pensure.se to see how easy occupational pensions can be.