Pensions for Directors or Owner Managers
Pension Schemes for Directors or Business Owners will typically take the form of either a SIPP or a SSAS. Such schemes offer considerable flexibility and can be used simply as retirement savings vehicles or as an integral part of the business planning strategy.
Pensions can be really useful, tax efficient vehicles that not only enable funds to be set aside for retirement but also offer options along the way to getting there.
In 2006, “Pensions Simplification” was supposed to make saving for retirement as easy as saving into a Cash ISA, but since then constant change to the rules surrounding pensions have seen the implementation of Annual and Lifetime Savings Allowances. Initially targeted at the upper end of the income/wealth scale, these allowances have been considerably reduced value since their introduction and now impact many of our clients.
Shareholding Directors/Owner Managers are more likely than most to have variable income and the Annual Allowance Rules are most likely to impact upon them; these rules are complicated.
All too often we here the phrase “my business is my pension” or “I can make more money investing in myself than through a pension”. But business doesn’t always work out; companies fail, bankruptcies occur, the best laid plans come to nothing. Pensions are an excellent way of extracting money from a business tax efficiently, in most circumstances offer protection from creditors, and ensure whatever the future holds businesswise, some resources have been set aside toward your retirement goals.
We value long term relationships with our clients; but what do our clients say about us?
Over the many years we have been with Hammond Raggett & Co we have always been extremely pleased with the service and personal attention they have given.
Their advice has always been clearly explained and we have been kept up to date with our investment portfolio through the annual reviews.They are a thoroughly professional and competent organisation and they have guided us through our finances and pensions, answering all our queries in a most efficient manner.
We would not hesitate to recommend their services.”
Barry and Cathy, Lancashire