Share plans are a valuable benefit that can allow individual employees to benefit financially from a company's success.
Whether share save plans, share incentive plans or share rewards, if the share price rises above the price at which the employee receives the shares, then employees can profit, subject to the scheme rules and tax.
Share benefits are a really valuable way to build up capital over the medium term (3-5 years) and when these are offered in the workplace should be considered as part of an overall savings plan alongside pensions and using other benefits to reduce outgoings and costs.
There are other attractions to share plans; on maturity they can (within specified time limits) be transferred to a pension as in specie transfer, so enjoy tax relief in the same way as a cash contribution would (subject to pension tax allowance limits).
They can also be held as shares in an ISA or a pension, but you should consider risk and diversification.
Making the most of share benefits can be a helpful part of an overall savings plan and, alongside pensions, can help to improve financial wellbeing.
Savers turning to share schemes to boost returns An increasing number of people are turning to employee share schemes in order to save more. In a challenging market it is often difficult for staff to save. However, according to findings by ProShare, employees are now saving an additional £60m each month through tax-advantaged employee share plans.