Is it time to raise your pension awareness?
Should we consider the “Triple lock shake-up” and current pensions debate a wake-up call for us all to look at exactly what our pensions will achieve for us in retirement?
With the government suspending the pension “triple lock” for a year, the effects of the Coronavirus pandemic and the general uncertainty and misunderstanding surrounding pensions generally, do you know whether you are guaranteed a secure and comfortable retirement lifestyle?
We all know that today’s state pension is not enough to ensure a comfortable retirement lifestyle for countless people, but for many business owners, the same might be said of their dormant workplace or personal pensions, sat idle and ignored. Many of us have one or more private or workplace pensions over the period of our working lives, keen to ensure we are providing for our own retirement. As we start our own businesses, our time is felt better spent, building our businesses than worrying about a retirement years down the line. All the while, these pensions are left in the hands of pension providers, investing in the volatile stock market and providing us with our yearly statement. In our busy lives, we probably tell ourselves we will look at our pensions next month, next week, next year, until suddenly, we reach retirement. Business owners are busy people but remember, these pensions are pots of your money
Whilst pensions are often ignored as a consideration later down the line, right now is the time to understand exactly what you have in your pension funds, what those funds are being invested in, what you are paying out in hidden fees and charges and how much they will yield for your retirement. Ask yourself these questions:
- Did you know that as a business owner, you can take control of your pension funds even before age 55 and invest in what you choose, including property and your business?
- You check my current and savings accounts on a regular basis, but do you look at your pension statements on a regular basis?
- Are you happy with the assets your pensions are being invested in?
- Do you even know what your pension funds are being invested in?
- Are you aware of your current pension charges and possible hidden fees?
- Did you know that you can use your pension funds before age 55 to help grow your business?
- Are you aware of the many tax savings to be made by transferring your dormant workplace and personal pensions to a director’s pension?
- Did you know, you can combine all your pensions into one fund, with a director’s pension?
- Did you know that you can pool pensions with other key employees of your company or even with family members to create a larger, more powerful investment pot?
If you have answered no to some of these questions, you are in the company of many business owners who simply don’t realise they have more options open to them when it comes to their pensions. Why settle for a retirement in the hands of others. Take control of your own pension funds and stop missing out on tax benefits, growing your business and investing in property whilst at the same time, growing your pension pot.
What is a SSAS?
A SSAS is pension trust that gives its members control of their pension funds and assets. A SSAS allows members to invest funds at their own discretion.
A SSAS has access to every type of investment that is allowed under rules set out by legislation, as with traditional pensions. In addition, a SSAS has additional investment privileges, such as investing in property or investing in your business, amongst other things. You can make permitted investments at any age; you do not need to be 55 to take control of the money in your pension.
A Small Self-Administered Scheme (SSAS) is a pension exclusively for business owners/company directors. The company director sets up the SSAS and is then able to invite up to 10 other members to be part of the scheme. Members can be other company employees or family members.
Using the SSAS’s unique loanback facility, you can make loans to your company of up to 50% of the total combined fund value. This can be repeated once the loan has been repaid.
How can I find out if I am eligible for a SSAS?
One of the most common enquiries we receive at The Landlord’s Pension is “Am I eligible for a SSAS pension?” So we’ve put together a short SSAS Pension Eligibility Test. This 60-second test will tell you immediately if you are eligible for a SSAS pension.