Directors Pensions
SMH Financial Services have been advising Directors and business owners for many years on their pension options. Our advisers can help you structure your pension in the most tax-efficient way possible.
What is a Directors Pension?
A director’s pension is a type of retirement savings plan specifically designed for directors of companies, particularly those in executive positions. These pension schemes can be set up for directors of both large corporations and small businesses, including directors who are also the owners of their businesses.
Benefits of a Directors Pension
- Tax Benefits: A Directors Pension plan offers several tax benefits for both the director and the company. Contributions made by the director through the company towards the pension plan are normally tax-deductible, which can result in significant tax savings.
- Flexibility: Directors can choose the amount of contribution they wish the company to make their behalf. Generally, contributions are arranged on a monthly basis but we can also arrange for ad hoc lump sum contributions, subject to company cashflow.
- Retirement Options: Directors Pension plans offer several retirement options, including the ability to take a tax-free lump sum, purchase an annuity, or take a flexible income.
If you are interested in learning more about Director Pensions and how they can benefit your business, please contact the SMH Financial Services team on info@smh.group or 0114 266 4432.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available.