Security Bank’s Trust and Asset Management Group sees employee retirement programs growing in 2021 and becoming part of the new normal for most companies as they recover from the economic effects of the COVID-19 pandemic.
In a recently held webinar for clients, the investment group invited RB Zalamea, chief operating officer of Zalamea Actuarial and one of the group’s consultants, to talk about the importance of having a retirement plan for both employers and employees.
During the webinar, Zalamea shared that more companies have started offering employee retirement plans specifically the defined contribution type which follows the retirement plans of other economies such as the United States and Europe.
“In the last five years, 40% of companies that have started their retirement plans and benefit are on the defined contribution (DC) type as it engages employees more. The fixed monthly contribution allows employees to see their fund growing inside the company. In the new normal, we can expect these numbers to continuously grow as companies further realize the need for such funds,” says Zalamea.
The new trend of companies availing of DC plans stems from the changing retirement mindset of millennials who prefer fixed monthly contributions with higher returns versus the defined benefit plan that most companies offer employees.
“Despite the move of newer companies to offer defined contribution programs to employees, the appointment of a trustee is still very important as they will be the ones to help guide and grow the funds of would-be retirees,” adds Zalamea.
Security Bank’s Trust and Asset Management Group has been managing the investments of Filipinos since 1951. The group started offering retirement funds in 2014 in response to the needs of employers to secure the future retirement of their employees.
Echoing Zalamea’s statement, Carmela Lim, sales and account acquisition head at Security Bank Trust and Asset Management Group says, “The changing investment landscape is a good time to assess and review options for a company’s retirement fund. Here in Security Bank, there are many investment options available that would allow companies to grow their fund and receive good investment returns. We are happy to be of service to clients who need expert advice in this area.”
To know more about how Security Bank can help you set up, maintain and manage a retirement fund for your company you may visit https://www.securitybank.com/personal/investments/trust-services/retirement-fund/