Pension planning

by admin on November 4th, 2010

What are the options available both to you and to your employees?

If you’re a business owner there are many different pension options available both to you and to your employees. We can help you navigate this complex area and advise you on how to make sure that you choose the most suitable pension schemes available for your particular requirements.

Offering employee benefits such as pensions is a very effective solution to attract and retain good staff. If you currently employ five or more staff, you need to offer them access to a Stakeholder pension, unless you are exempt, for example, if you have an existing qualifying scheme. You don’t have to actually contribute yourself, but you must facilitate employee contributions.

In 2012 the UK government will introduce a new pension scheme to the UK. Previously known as Personal Accounts, the new name will be The National Employment Savings Trust (NEST). The initiative is part of an overall general pensions reform strategy and will create a significant change in the way people save for their pensions and retirement in the UK.

For the first time employees and employers will be forced to contribute to a NEST pension on behalf of the employee, unless they choose to opt out or unless they already contribute to an alternative qualifying workplace pension.

The government created the scheme to make it easier for mainly low to middle income workers to access an employer sponsored pension scheme or workplace pension.

If you are the owner of a business, pensions can be a very tax-efficient way of drawing money from the business. Pensions shouldn’t be dismissed without careful consideration. However, if you don’t like the idea of investing in a pension, talk to us about other possible alternatives.

If you are currently in the early days of building your business, you should be mindful of the dangers of relying on this entirely to support your retirement years. One advantage of having your own pension provision is that you can build up wealth independently of your business, essential if your business isn’t as successful as you had planned.

Pension funds do not just invest in stocks and shares. Most plans allow you to invest in all the main asset classes, including cash, fixed interest, property and shares, allowing you to tailor your plan to meet your own preferences. Self-Invested Personal Pensions can offer even greater choice for the more sophisticated investor.

From → Financial News

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