If you are looking to set up a personal pension, have existing pension plans reviewed or wish to discuss work place pensions then we are here for you.
Workplace Pensions are regulated by The Pensions Regulator.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.
A SIPP stands for a Self-Invested Personal Pension. It's a type of personal pension scheme available in the UK that allows individuals to have greater control over their retirement savings and investment decisions.
Investment Control: Unlike traditional pension plans, SIPPs offer a broader range of investment options. Individuals can invest in various assets such as stocks, bonds, mutual funds and commercial property.
Tax Benefits: Contributions made to a SIPP are eligible for tax relief, meaning the government contributes money to your pension in the form of tax relief. The tax relief is based on your income tax rate, and there are limits on the annual amount that can be contributed while still receiving tax relief.
Flexibility: SIPPs provide flexibility in terms of managing and accessing your pension savings. You can usually choose when to start taking your pension (usually from the age of 55 but from April 2028, it will be from the age of 57), how you take the money (lump sum, regular income, etc.), and how you continue to invest the funds.
Potential for Growth: With a SIPP, individuals have the opportunity to potentially grow their pension savings through a wider array of investment options compared to more traditional pension schemes.
SSAS stands for Small Self-Administered Scheme. It's a type of UK-based occupational pension scheme designed for small businesses and company directors. SSASs are typically set up by employers to provide retirement benefits for their employees, especially key individuals within the company.
Control: SSASs offer a high level of control over the investment decisions made within the scheme. Members, usually directors or key employees, can make investment choices for the assets held within the SSAS, including commercial property, stocks, bonds, and other investments.
Flexible Contributions: Employers and members can make contributions to the SSAS, subject to certain limits set by HM Revenue & Customs (HMRC). These contributions can be used for investment purposes within the scheme.
Tax Benefits: Contributions made to a SSAS can be eligible for tax relief, similar to other types of pension schemes in the UK. Additionally, investments within a SSAS can grow free from capital gains tax and income tax.
Retirement Benefits: Upon retirement, members can access their SSAS funds. Options for accessing the funds include taking a tax-free lump sum (up to a certain limit set by HMRC) and using the remaining fund to provide a retirement income, usually through an annuity or drawdown arrangement.
Loan Capabilities: In some cases, a SSAS can lend money back to the sponsoring employer, providing a source of finance for the business. However, there are strict regulations around this to prevent misuse.
SSASs offer significant flexibility and control over retirement savings compared to other pension schemes. However, they also come with complexities, administrative responsibilities, and regulatory requirements that need to be managed effectively.
A corporate pension, also known as an occupational pension scheme, is a retirement plan sponsored by an employer for its employees. These plans are established and maintained by companies or organisations to provide retirement benefits to their employees after they retire.
Defined Contribution (DC) Pension Plans: In these plans, employers and/or employees contribute funds to individual accounts, and the retirement benefit depends on the contributions made and the investment performance of those contributions. The final payout is not predetermined and can vary based on investment returns.
Defined Benefit (DB) Pension Plans: These plans promise a specific benefit amount to employees upon retirement. The benefit is usually calculated based on factors such as salary history and years of service. Employers bear the investment risk and the responsibility to fund the promised benefits.
TOM&CO are able to offer independent advice, whilst accessing the full market to provide research & support you with the implementation of a corporate pension for your business.