Business Link - Pensions

Pensions

What sort of pension can I have?

 

You should ensure that your pension will provide enough income for your retirement – and never rely on the proceeds of the sale of your company to finance your retirement. As a business director or owner, you could consider:

 

• Executive pension plan (EPP)
• Self-administered scheme (SAS), also known as investment regulated schemes
• Self-invested personal pension plan (SIPP), also known as investment regulated schemes
• Employer-financed retirement benefit scheme (EFRBS), a type of unregistered scheme with fewer tax benefits

For information on registered schemes view our guide Choose the right pension scheme - registered.

 

For information on unregistered schemes view our guide Choose the right pension scheme - unregistered.

 

Do I have to provide a pension scheme for my employees?

 

If your business has five or more employees the law says you must provide access to a stakeholder pension scheme (unless your business is exempt). You do not have to contribute towards the scheme, but you can if you wish.

 

To find out more about your legal obligations to employees visit the The Pension Service website.

 

Should I provide an employee pension scheme, even if I don’t have to?

 

Providing an employee pension scheme could be very advantageous for your business. Morale and loyalty are encouraged, and pension schemes help to attract and retain high calibre staff. In addition, substantial tax relief is available.

 

Do I need to consult a professional pension adviser?

 

Pension laws can be complicated. You will need to find out what pension will be best for you and for your employees – and what your legal obligations as an employer are.