Debt management in corporate wrap divides advisers

Advisers are divided as to whether corporate wraps which include debt options can gain traction with either employers or employees.

Steve Herbert, head of benefits strategy at Jelf Employee Benefits argued that debt management would be a worthwhile option within company wrappers.

Herbert said: “I think the ultimate aim of a corporate wrap is something that puts all the money and all the debt in one place so employees can move their money around in the most tax-efficient or the most useful manner.”

“If you take the debt part into the corporate wrap, then the employer’s money can be used to pay off the debt as part of the process towards saving. Then it’s all interlinked and you get to a point where actually employees are saving and spending efficiently.”

But Roy Edie, senior consultant at Towers Watson, says the idea would only be “great” if the corporate wrap was designed to be a personal finance planning tool, but might not enjoy uptake among employers or employees as part of a company offering.