What to do with employees of the enterprise of pre-retirement age who are ready to buy life insurance?

If a long-term insurance program is activated at an enterprise that employs people who have ten or less years left before retirement, will they have time to accumulate funds?

There is a norm of attributing to gross expenses the funds that an employer can spend on savings for such people – 15% of the payroll. If the contract is concluded for ten or more years, then this is enough to buy a certain benefit for the employee in addition to wages. But when it comes to pension savings, life annuities, this norm is not enough, because the average salary in Ukraine is 1.5 thousand UAH.

Is it possible to save enough money for such employees?

It should be taken into account that these people have already worked for many years and for the company they are the most stable and loyal staff. Given the opportunity to activate a long-term life insurance program, the entity would prefer to take into account the previous years of work of this person in the company. In order for people of pre-retirement age to have time to accumulate a significant addition to their pensions, the state needs to raise the rate of 15% or remove it altogether. I want to note that this rate is one of the lowest in Europe. Normal practice is 25-40%. An example is the Netherlands, where this rule was abolished three or four years ago.