Pension ContributionPlanning

Pension contributions can be a tax-efficient way to extract funds from your business for personal retirement funding.

Planning for retirement is essential, even for those with a substantial shareholding in a business. It means ensuring you have the money to support your family during retirement, covering living expenses, healthcare costs and additional needs.

 

Relying solely on the value of your business as a retirement asset can be risky: markets are dynamic, the valuation can fluctuate and finding the right buyer can take time.

An effective way to diversify your retirement funding is through well-planned pension contributions (and the suitable investment of these funds). The Shorts team can advise on this and other tax-efficient retirement funding strategies.

 

Tax relief on pension contributions

Employer pension contributions are usually tax-deductible for a business; you can reduce your taxable profits by making contributions through the business.

When you contribute money to your pension personally, you receive tax relief on those contributions, making it a more attractive and tax-efficient way to save for retirement. The amount of tax relief you receive depends on which tax band the contribution falls into.

How the Shorts team can help

Our pension contribution planning advice you secure your retirement, tax benefits, and a positive contribution to your business.

  • We will recommend a suitable pension plan that aligns with your personal preferences, as well as your business size and structure.
  • We will ensure your plan qualifies for all available tax benefits and reliefs.
  • We will help you utilise employer contributions as part of your employee benefits package.
  • We will keep you informed about changes to contribution limits and other essential factors that may affect the tax efficiency of your plan.
  • We will explore the possibility of making pension contributions for family members involved in the business.
  • We will help you diversify your investments within the pension to manage risk and maximise returns based on your individual requirements.
  • If needed, we will help you adjust your contributions based on any changes in income, business performance, or retirement needs.
  • We can also help you select the right type of pension scheme for your employees, on top of additional financial planning advice options, including group life insurance.

The value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed, and you may get back less than you originally invested.

If you would like to book a consultation with our team of qualified independent financial advisers, get in touch today using the form below.

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