Just because offering a pension to your employees is a requirement now doesn’t mean it can’t still be a good selling point to attract the best staff to come to work for you. It sounds obvious but not all company pension schemes are the same and choosing the right one for your business can have a host of benefits beyond just meeting requirements.
There are a huge number of options out there and which would be most suitable for your company will depend on factors such as the number of employees you have and roughly how old they are, how the company is structured, staff contracts, company finances and tax as well as the preferences of the business owners and employees. To help our clients choose the right corporate pension scheme, we take the time to learn all about the business as well as searching the whole pension market to find the right scheme for you.
When taking on a company pension, one of the obvious benefits is tax savings. With a salary sacrifice scheme, employees save on their tax liability and companies can save on National Insurance contributions in addition to the fact a pension is considered to be a reasonable business expense. Company directors can have executive pension arrangements which reward them on the success of their business and employers can secure their employees’ pension rights while using a trust based arrangement by transferring the scheme liability to a new pension arrangement.
As with all pensions invested in the stock market, the value of corporate pensions depends on how well the funds they are invested in perform so there is always a chance that the value can go down as well as up. When we work with businesses to help set up their company pension schemes, we go through all the benefits and risks of the pensions we recommend to allow directors to make an informed decision on the best way to secure the futures of themselves and their staff through a pension scheme that works for their business.
Risk Warning: A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation