Corporate pensions

As a business owner, how are you supporting your employees to plan for their retirement? There are a range of potential solutions that will provide both you, and your employees, with tax efficient retirement benefits.

It has long been recognised that most people are not saving enough for retirement and, as a result, may not be able to live comfortably on their state pension alone.

Your Fairstone adviser can help you to understand the range of corporate pensions and the benefits to your business and employees.

Auto enrolment

Auto enrolment makes it compulsory for employers to automatically enrol eligible workers into a pension scheme and then pay into the scheme on their behalf.

There are minimum contribution guidelines for both you and your employees which are currently set at 3% from the employer and 5% from the employee.

Schemes are going to vary in terms of fees, expenses and investment approach. If you need help setting up a suitable scheme for your business, a Fairstone independent financial adviser can search the whole of the market to find the best possible solution, and will help you to remain compliant.

Small Self-Administered Scheme (SSAS)

A Small Self-Administered Scheme (SSAS) is a type of occupational pension scheme established for the directors and senior employees of a business. It is set up under trust by the sponsoring employer for the benefit of the scheme members.

Each member will have a ‘share,’ or interest, in the SSAS fund. This will depend on the contributions and transfers paid in by, or on behalf of, a member, their share of any investment growth (or loss) and any relevant payments made from the SSAS for them. The amount of benefits that a member can receive will depend on the value of their share of the SSAS fund at the time they decide to take the benefits.

A SSAS can also be used to make a loan to the sponsoring employer or to acquire commercial property. Not only does this inject valuable cash flow into the business, but it also provides a regular income which is free from income tax. There are a number of other advantages to holding property within a SSAS, including tax relief on any contributions used to purchase the property.

A SSAS will not be suitable for all investors. You should speak to one of our independent financial advisers if you have any questions, as they will be able to search the whole of the market to find the best possible option for you and your business.

Group SIPP

A Group SIPP (Self-Invested Personal Pension) pools together the pension assets of its members for investment purposes.

Each member has their own account within the group SIPP that will be individually registered with HMRC, but all assets are combined into a single fund. A member’s initial share in the fund, their investment returns and associated costs will be based on what they pay in.

Individuals can make further contributions or transfer payments and take funds out as a tax-free lump sum or a pension when they draw benefits. Each individual’s share in the fund will be re-calculated each time this happens. A group SIPP only operates as a pooled fund, so individual investment is not possible.

If the advantages of pooling together assets are not needed, then other pension arrangements may be more suitable. You should speak to one of our specialist corporate financial advisers if you have any questions, who will be able to search the whole of the market to find the best possible option for you and your business.

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Protection and insurance

If you think about your core team, the skills and more importantly knowledge of your business and its inner workings that your key individuals have, what would you do if you unexpectedly lost them to illness or sudden death? Are they replaceable and at what cost to your business?

Your Fairstone adviser can help you to understand the importance of setting up corporate insurance.

Employee benefits

You know that your employees are your greatest assets and that when they are fully engaged they can be your best brand ambassadors.

Employee incentives can be the key to attracting and retaining the key people that will help you to drive your business forward.

Typically, these incentives include employee insurance and health care, workplace pension schemes and related HR benefit administration. The package you provide is completely dependent on what is appropriate for you and your business objectives. Your Fairstone financial adviser can help you create a bespoke package that meets your budget and your end goals, whilst at the same time keeping you compliant with your auto enrolment obligations.