Private companies and self-owned institutions in Greenland are doing well in pension savings for employees. Savings from employees in 12 companies have reached DKK 870 million. DKK, says an independent pension adviser.
Companies in Greenland largely pays into pensions for their employees.
According to the independent pension consultancy WTW, 12 Greenlandic companies with around 3,700 employees per 1 April this year saved up DKK 870 million for pension. This is stated by WTW in a press release.
According to WTW, the introduction of the mandatory pension scheme is back in 2018 contributed to greater recognition of pensions in Grønland.
The autonomously owned company Air Greenland is among those who pay. The company has around 650 employees, and according to the company’s HR director, the employees’ pension savings are important.
– There has been a development in the way pensions are viewed. You can see this in the young people who were previously not keen on the idea of saving.
– Many young people may want to start a family and use the money to settle down, but we have found a tax solution where we move the percentages slightly between us and the employee, so that the taxation is reduced and deducted directly from the deposit. This has made it somewhat easier and more tolerable to save up, says Mads B. Christensen in the announcement.
Pension savings are not particularly incorporated
Inatsisartut adopted a law on mandatory pension savings in 2018. According to naalakkersuisut, the law means that citizens in Greenland with an annual income of more than DKK 125,000 save around DKK 1 billion for pensions per year.
Tommy Ege Kristensen is owner and director of Cadvi ApS. The company in Nuuk works with consultancy within HR. According to the director, it is positive that more attention has been paid to pension savings in Greenland. However, he also says that there are still some who ask questions about the savings. He believes that this is natural because the savings tradition is new.
– Pension has not yet become a good as it is known in Denmark, but it is also only now that we are getting the first generation of pensioners who actually benefit from their savings. The pensioners thus help to strengthen the tradition about pensions, and tell others how the schemes work in practice, and we have not had that before, writes Tommy Ege Kristensen.
WTW cannot disclose which 12 companies are involved, the company informs Sermitsiaq. This is justified by the duty of confidentiality for the sake of the customers.
