Contractor pension options - opinions expiriences please

[SeededLoaf]

Is it likely that the private pension age will be increased so by the time someone in their 20s/30s could be looking at 60 onward?

Reading various articles the Gov seems intent on raising it.
"If you're aged age 36 to 44**, you get your money at age 58. For Generation Y(ish), those from 23 to 35, the magic number is 59. For anyone younger, it will be at least 60." - the Telegraph.

That being said, would it be wise not to throw all the eggs into the pension basket if you intend to retire as early as possible. e.g a big chunk left in the business account.

[AnotherGuy]

Another one here considering opening a Pension this year.

I'm not sure I will be maxing it out tho, as 55 is way too in the future for me but not sure what else to do with these pesky off the roof corp. tax bills

Will be following this thread as I need to decide a provider.

[saptastic]

thank you for your response

Would you have IFA to recommend?

I am trying to see risk wise as well if it makes sense to invest more in ISA rather then Pension funds, perhaps IFA would help clearing this ...

One can not wihdraw funds from SIPP and leave them with broker company in case of market issues, recesions etc ?

Try this - you can get pensions advice here

Contractor pensions advice :: Contractor UK

[malvolio]

Sorry, it's late here and I've only just seen this. OP, if you look at some of the many pensions threads I have commented on, all your questions are answered. And no, you do not need an IFA. You can move your money between stocks/funds/bonds and cash within the SIPP wrapper very easily when ever you wish. But you cannot cash it in till you're 55. HTH.

You don't need an IFA as long as you use a SIPP....

You're right but I get the feeling that's not what was being asked.

[Fred Bloggs]

Sorry, it's late here and I've only just seen this. OP, if you look at some of the many pensions threads I have commented on, all your questions are answered. And no, you do not need an IFA. You can move your money between stocks/funds/bonds and cash within the SIPP wrapper very easily when ever you wish. But you cannot cash it in till you're 55. HTH.

[FarmerPalmer]

I use a stakeholder which I had from a previous employer. It's with Aegon. Low fees and reasonable range of funds. IPSE provide access to Aegon stakeholders now too.

[malvolio]

thank you for your response

Would you have IFA to recommend?

I am trying to see risk wise as well if it makes sense to invest more in ISA rather then Pension funds, perhaps IFA would help clearing this ...

One can not wihdraw funds from SIPP and leave them with broker company in case of market issues, recesions etc ?

Can't really hep with an IFA, mine retired a while back, but there are a couple of websites that will help you track one down if you don't get a recommendation: your accountant may well know of one or two.

As for shuffling money about, it's not necessarily that easy. Pension pots enjoy various benefits but as a result there are limits on what you can do with them; taking money out isn't a problem but putting it back may be. As I say, get professional advice.

[Smartie]

briefly

As far as I remember (and I'm sure an accountant will be along shortly ;-) you get slightly more tax relief by making personal contributions 42.5% over 40% for company contributions BUT personal contributions are limited to your 'Net Relevant Earnings' - salary minus deductions so if you pay a low salary this is a limit e.g £8k

You can pay up to £40k into your pension per year and also back track a couple of years if you didn't pay the maximum in as long as you've maxed out this years.
There's also a max limit of I think £1 million total pension - if you exceed this you may get hammered for tax.

I just make company contributions and use Hargreaves Lansdown for a SIPP. It's not the cheapest for most but it's a good service.
Now you can take your pension from 55, if you're knocking on a bit then putting a fair chunk of your income into a SIPP is a pretty attractive prospect given the current tax relief.
This might of course change, there have been noises recently about removing the higher tax relief on pensions and I imagine it will happen at some point.

Anyway, speak to your accountant.

[markotsg]

thank you for your response

Would you have IFA to recommend?

I am trying to see risk wise as well if it makes sense to invest more in ISA rather then Pension funds, perhaps IFA would help clearing this ...

One can not wihdraw funds from SIPP and leave them with broker company in case of market issues, recesions etc ?

[malvolio]

Hello

I am in the process of finding and starting my Pension via LTD company.
I head you can make payments to pension via LTD company which reduces your Corporate tax bill but also via personal contributions which incrases your tax band?

Can anyone recommend pension type SIPP, Personal pension , etc and also Pension provider ?

Have you organised this via sites like HL or Fidelity, Standard Life etc or via Independent Financial advisor?
Can you recommend one please?

any tips would be much aprpeciated

Thank you
Marko

It can be a minefield, especially if you get it wrong. Get hold of an independent FA that you are paying and that understands small corporate as well as personal taxation.

Best to pay from the company which, as you say, is deducted from your CT liability, but there are limits to what can be paid out in any one year. You don't get any personal benefit unless you take money out of the fund, when you can have up to 25% tax free (or as much as you like but you will be taxed at your highest marginal rate after that 25%) but you can only do that once for any given fund.

Paying it out of personal income attracts tax relief of course, but you lose the CT saving and the limits of what can be put in are much lower.

[markotsg]

Hello

I am in the process of finding and starting my Pension via LTD company.
I head you can make payments to pension via LTD company which reduces your Corporate tax bill but also via personal contributions which incrases your tax band?

Can anyone recommend pension type SIPP, Personal pension , etc and also Pension provider ?

Have you organised this via sites like HL or Fidelity, Standard Life etc or via Independent Financial advisor?
Can you recommend one please?

any tips would be much aprpeciated

Thank you
Marko