How To Find The Best Pension Plans For You

Pension plans

Last updated 02 May 2019

 

(Rated from 196 reviews)

For business-savvy individuals, planning for retirement does not only mean making sure there is enough contributions made into a pension fund but also finding ways to accumulate compound interest on that fund.

In these unstable economic conditions, you have to be willing to take risks in investment so you can maximize the potential growth of your pension money. It is a good thing that there you have many choices in terms of the best pension plans that will satisfy your specific business expectations and lifestyle needs.

Best Pension Plans For Profit-Driven Individuals

If you have a keen eye for business, here are best pension plans that can boost your profits and speed up your ROI (return of investment).

We’ve prepared a detailed article with all the information you need to know before getting a Private Pension plan. Don’t miss it. It’s important to receive recommendations from the best pension adviser in the business! Luckily for you, we have one!

Executive Pension Plan (EPP)

Public institutions and private companies also call this Defined Contribution Occupational Pension Plan. Find Out More About UK PensionsQNUPS.Managers and directors of large-scale businesses as well as owners of small firms can benefit the most out of this scheme. Like other UK pension plans regulated by HMRC, it follows the same rules for contribution limits, tax exemptions, and benefits.

Its key elements that can prove advantageous to profit-driven individuals are:

  • Contributions by the company are exempt from income tax and corporate tax
  • Company can make adjustments with the amount of contributions depending on its current financial status
  • Except for UK dividends, funds from the pension plan are tax-free

Self-Administered Scheme (SAS)

Controlling directors of companies as well as owners of small family-run businesses can benefit the most out of this occupational pension scheme. We’ve prepared a detailed article about pension transfer. If you are searching for information on this subject make sure you don’t miss it! Unlike conventional plans in the UK which restricts the plan holder in using the funds, SAS encourages the plan holder to invest in any kind of assets, properties, and business opportunities.

Its key elements that can prove advantageous to profit-driven individuals are:

  • Plan holder can borrow as much as 50% of their fund to invest in business opportunities such as commercial properties, factories and shopping malls, offices and shops, insurance funds, stocks and shares, and national savings products
  • Contributions by the company are exempt from National Insurance

Self-Invested Personal Pension (SIPP)

This personal pension scheme gives plan holders total freedom to be involved in any HMRC-regulated investment. This is one of the best pension plans you can get if you are regularly dealing with leasing, buying, and selling assets and properties.

There are many pension tax reliefs that you can benefit from. Read our detailed articles to find out how. SIPP could be the top pension plan for individuals who have a keen eye for investments. In this type of pension plan, plan-holders have more control over the use of their funds and the businesses their money is being invested in.

They can make their own decision as to what to invest in and maximize the potential growth of their money. Moreover, you can also take advantage of the SIPP’s income drawdown, which allows you to keep all the profits from your investment without paying any taxes at all.

If you have a knack for making profits out of different businesses, then a SIPP is what you need. With a SIPP you have more control over the way your money is invested, it allows you to make investments using your own fund, maximizing its full growth potential.

You can even have an “income drawdown” where you don’t have to pay any taxes on the profits you earned from your investments. You will need a professional to advise you on this but a SIPP is a good retirement plans if you want compounded interest and lower taxes.

Its key elements that can prove advantageous to profit-driven individuals are:

  • SIPP income is tax free
  • SIPP growth is free from capital gains tax
  • Plan holders can deal with assets and properties both onshore and offshore.

Benefits From Your Best Retirement Plan

  • Easy to manage and incorporate into your regular budget
  • Tax exemptions on your contributions
  • Higher tax relief as you increase your contributions
  • Choice to take as much as 25% lump sum upon retirement
  • Compound interest for your pension fund
  • Freedom to invest your money in any type of business (depending on the type of retirement plan)

We’ve prepared an in depth article with all the information about the benefits from an Offshore Pension. Check it.

Are There Any Restrictions

You can get several of these best pension plans in the market today provided that you follow these rules:

  • Lifetime contributions should not exceed £1.8 million.
  • Annual contributions should not exceed £245,000.
  • If the plan holder chooses a lump sum payment, the remaining fund will be provided as a monthly income.
  • Annual allowance should not exceed £50,000.

Contributions

You have to determine how much money you want to have upon retirement. This will give you a projected estimate of the amount you need to put into your retirement option. According to recent surveys, you should have at least two thirds of your final salary within your pension scheme to be able to enjoy a comfortable life during old age.

So you have to make sure that you are choosing the right provider that can satisfy your specific expectations and needs. If you want to find out more about your best retirement plan options, you can contact us and talk to our reputed financial adviser.

So Which Is The Best Pension Plan For You?

You have to understand that there are big risks involved when you invest your funds into different business opportunities. But if you invest wisely, the returns can also be big. This guide will help you further understand the pros and cons of getting these top plans offered today for business-savvy individuals.

We advice you to speak to a reputable pension adviser so you can be well informed about all the options that are available to you when choosing the best pension plan.

Deciding About The Best Pension For You And Your Loved Ones

It is never too early to save up for your retirement. Find out more about the best pension that will satisfy your specific lifestyle needs and business expectations by talking to our reputed financial adviser. It can help you weigh the pros and cons of the different types of schemes so you can benefit from it during your old age. Read More: What You Need To Know Before Getting A Private Pension Plan.

John Lawson

John Lawson

John advises business, individuals, and organisations on pension planning. As you’ve probably realised by now, we’re invested in helping people like yourself understand a little bit more about how equity release options work.

About Us

We’re here to provide information on Equity Release options and UK pension transfers and how they work.

Recent Posts