Pensions For Business Owners

EBP Logo 2Neil Morrow
The EB Partnership

Running a business lays many pressures on the business owners. Day to day management is never ending and often means that company and personal pension planning gets pushed further and further down the agenda. But creating and funding a savings plan is one way to ensure that you will be able to exit the business and secure a comfortable retirement.

Saving into a pension has become simpler and the sooner you invest in a pension the more you will have available to make the most of your retirement. Pension law changed in October 2012 which means that every business will soon be obliged to contribute to a suitable pension scheme for all eligible employees. If you do not provide a pension scheme for your employees already, then you will need to implement a scheme which meets all the legal requirements and better still encourages you and your employees to take funding your retirement seriously.

Why act now?

Rising life expectancy has put pressure on retirement planning, highlighting the real danger that you might outlive your savings. By taking action early on, there is a greater chance you will be able to adequately fund retirement.  As you will need to make changes to meet the new legislation, now is a good time to review matters.

Help for business owners

Since the advent of a simplified tax regime, you can use your company’s pension scheme to enhance the benefits you provide to employees.

One of the benefits that we have found is well received by employees, is to allow employees to contribute to the company pension via Salary Sacrifice. This method allows you and your employees to exchange earnings for non-cash benefits (such as a pension) which means both the company and the employee reduce their National Insurance bill and employees receive all their tax relief up front. You then have a decision to make as to what to do with the Employer’s National Insurance savings, which can be considerable!

In general terms

If you are looking to buy or sell a business you will now need to ensure that the company has made plans to be compliant with the compulsory requirement to automatically enroll staff into a pension plan (either before or at the time of their given Staging Date).

The EB Partnership can help identify the likely impact on your business of this new regime, and show you ways of offsetting some of the likely costs, manage the delivery of your required solution, and importantly give you a return on the investment you will have to make.

For a summary of the position for your company please contact

The EB Partnership, Apsley House, 176 Upper Richmond Road, London, SW15 2SH
The EB Partnership is an appointed representative of Bond Wealth Management Limited which is directly authorised and regulated by the Financial Service Authority. The value of your investment can go down as well as up.

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