Directors’ Pension Adviser Cambridge
A Director’s pension is not just about saving for retirement, it is a great way to extract business profits tax-efficiently and for your benefit.
Did you know that a Self-Invested Personal Pension (SIPP) or Small Self-Administered Scheme (SSAS) can invest in business assets like commercial property and even make loans back to your Company?
"My business is my pension"
That’s a common misconception. You may be fortunate and sell your business one day, but many businesses are so dependent on one or two individuals and that they may not be attractive to a buyer once you retire. Also, let’s be honest, some businesses fail or get wound up when the directors retire.
Further, pensions are held under pension trust arrangement. Therefore, creditors can not claim your pension if your business gets into debt provided the contributions have been regular and paid in for the purpose of providing retirement benefits.
Pensions for company directors are also much more tax-efficient than putting money into a bank or building society account or even an ISA, for example. None of the alternatives benefit from the generous tax-relief available to pension schemes.