Other Pension Options

In addition to a SIPP, there are several other types of pension that may be suitable for directors and business owners. These are:

Occupational Pension

This is a company pension provided by an employer. The benefit received at retirement may be linked to final earnings (defined benefit) or on how much has been put in and the investment growth (defined contribution).

Small Self-Administered Scheme (SSAS)

An employer’s pension scheme aimed at senior employees and company directors with membership restricted to less than 12 employees. There are options available with this type of scheme that are not available with an occupational scheme and members have the power to decide their own investment portfolio.  The scheme, a corporate identity in its own right, can buy commercial property (which could be the business premises) and, importantly, can make loans back to the business – an attractive benefit, particularly where cashflow is an issue and borrowing difficult. Furthermore, the SSAS can invest in shares in the company, with a maximum holding of 5%.

Personal Pension

This is a defined contribution type of policy and your final retirement benefits will depend on the total amount of contributions made and how the investment funds have performed.

Stakeholder Pension

Designed by the Government with low earners in mind. Low charges but also usually have a restricted range of investment fund options.

If you would like to see which of these options may be best for you, please contact us for free initial consultation.