Funding your retirement can be done in many different ways and figuring out which suits you best can be the hardest part of the process. Now, we aren’t here to advise on pensions (although we have some great partners who can help more if you need), but knowing this is something that business owners think about all the time, we wanted to help simplify what is often a difficult topic.
Businesses and individuals looking at their pension plans should be aware of important information such as:
- An individual’s lifetime allowance savings is £1,073,000
- Pensions may normally be drawn after age 55, and it’s possible to buy an annuity to provide regular income
- If the pension member dies, any savings left in the fund can be passed on in your will to loved ones
- Pension schemes include Executive Pension Plans (EEPs), Self-invested Personal Pensions (SIPPs) and Pension Salary Sacrifice allows employees to exchange earnings for non-cash benefits
Having a business can certainly be one way to have a comfortable retirement, but what if things don’t go as planned?
Generally, don’t put all eggs in one basket, and for retirement in particular you will want to have lots of alternatives. If you are considering a SIPP, then it’s worth speaking to a financial advisor. For anything else from tax to business advice, we are available. Get in touch with your local AIMS Accountants for more information.
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