Pension Plans

Staff Schemes

Since 8 October 2001, as an employer of five or more employees, you have the responsibility to provide a stakeholder pension scheme. You must provide access for all employees unless they are exempt (there are a number of exemptions) or you offer a qualifying group pension plan.

You do not have to contribute to the scheme on behalf of your employees, however for those employees that wish to make personal contributions to the scheme you must be able to collect these from pay and forward them to the nominated provider.

Furley Financial are able to advise and arrange on the implementation of a group pension or stakeholder scheme in order that you comply with the requirements.  We offer a comprehensive service and can provide a seminar to your employees to explain the scheme as well as advice to individuals on how to set their contribution level.  We liaise with your accounting department and the pension provider to ensure that the scheme is set up and continues to run smoothly.

Director’s Schemes

Your own pension needs could be fairly complex. This depends on your existing arrangements, your income and other remuneration and your requirements in retirement.  There are three main types of pension that could be suitable for you.

Personal Pension Plan

A simple personal pension plan may be appropriate, where you wish to keep your pension arrangements separate from the business and have no need for more choice in underlying investments.  You may not have decided how you wish to take benefits in the future and want to keep things simple and cost effective.

Salary sacrifice arrangements may be attractive for you, whereby you give up part of your salary in exchange for a contribution directly to your pension scheme, which means that you will save income tax and national savings deductions on that amount.  On the slip? side, your salary will reduce for the purposes of mortgage applications or any means tested benefits.

Self Invested Pension Plan (SIPP)

A SIPP is a more sophisticated personal pension plan where the individual has the ability to invest in a wider range of assets such as directly invested shares and bonds, collective funds, bank deposits and commercial property.  A SIPP is able to buy unlisted shares in the member’s company and is able to borrow in order to buy commercial property to be used in the member’s business, although there are restrictions on these investments.

SIPPS offer the ability to take retirement benefits flexibly by using income drawdown or phased retirement without the need to change pension provider.

Small Self Administered Schemes (SSAS)

SSASs are occupational schemes generally set up for controlling directors.  They also benefit from a wide range of investment choices including commercial property.  They have the ability to borrow to purchase assets to be used in the business, however unlike SIPPs they are also able to loan money to the business, subject to restrictions and the loan must be secured. 

High earners need comprehensive advice on pension planning as the ongoing monitoring of your pension pot is as important and they way that retirement benefits are structured.  Pension legislation is vast and complicated and always changing so you must make sure that you are taking full advantage of all allowances and methods of achieving the retirement you want.

For further information speak to Simon Ludden, Financial Planning Manager on 01227 763939.

Quick contact

Furley Page Solicitors in Kent, London, Canterbury, Chatham & Whitstable
Get in touch on 0845 603 10 57