x Abu Dhabi, UAESunday 21 January 2018

NBAD offering expats a pension-like savings plan

National Bank of Abu Dhabi subsidiary launches Today Wealth Builder Plan, which allows employers to offer their expatriate staff corporate savings and pension schemes.

NBAD’s Wealth Builder Plan allows employers to offer their expatriate staff corporate savings and pension schemes. Christopher Pike / The National
NBAD’s Wealth Builder Plan allows employers to offer their expatriate staff corporate savings and pension schemes. Christopher Pike / The National

Launched this week, NBAD Trust Company (Jersey) Limited, the wholly owned subsidiary of the National Bank of Abu Dhabi (NBAD), has introduced its Today Wealth Builder Plan, which allows employers to offer their expatriate staff corporate savings and pension schemes.

The Wealth Builder Plan has been specifically designed for companies that employ expatriates.

It is essentially a packaged corporate structure underpinned by a range of investment fund options that employees can choose based on their risk appetite.

The schemes are tailored for each client, and regular investments can be made solely by the company or by both employer and employee.

The NBAD pension plans have yet to be taken up by any employers, but staff might consider thinking about whether they represent a better deal than pinning their hopes on end-of-service benefits.

It is too soon to tell how much companies are likely to match employee contributions, but savvy investors should take the extra contributions to top up their retirement income anyway.

The onus may be on the individual to invest carefully. However, that is arguably better than gratuity payments, which cap out at a maximum of two years' basic salary and which can evaporate if an employer goes bankrupt. And if you find saving money no fun, it might be wiser to outsource the hard part to your company's finance department.

Samira Zakour, the chief marketing officer of NBAD Trust Services, said: "By offering employees a cost-effective and professionally managed savings solution, employers will be able to demonstrate that they have the long-term interests of their staff in mind. This will have a powerful and positive impact on their ability to recruit and retain high quality employees."

The basket of investment opportunities underlying each scheme is managed by NBAD's Asset Management Group.

"NBAD will be providing well balanced investment funds as the core of our Wealth Builder Plan service," says Alan Durrant, the group chief investment officer and general manager of NBAD's asset management group.

Employers and employees will have access to web portals where they will be able to get instant access to their account information and plan performance.

The administration of the plans will be carried out by RBC Corporate Employee and Executive Services.

pf@thenational.ae