Executive Pension Bond

I am hoping that someone here could help me where my own broker has little knowledge which sometimes annoy me as he rarely has a definite answer for me alot of 'probably not possible'. I have an executive pension and would like to buy 'a buy out bond' with it even though I want to start paying into a simular pension. You might ask why buy bond now but one of the reasons I dont want my partner to have to buy an anuity with my fund if I should die before I retire. My question: is it possible to do this or maybe start the pension in my partners name who also works in the business and whose money it is too. I hope this makes sense to those of you who have all the answers about pensions.

Hi Hans,

Are you and your partner company directors if so what percentage is your shareholding, how many members are there in the scheme or is it just a one person arrangement.

Is there a death ih service benefit built into the scheme. Is so up to 4 times salary at time of death plus a refund of any employee contributions could be payable to your dependant's,should the death in service benefit be more than this the surplus income would have to be used to purchase an annuity.

You have a multitude of options. sit down and talk to someone who does know what they are talking about

Thanks Leroy67 Both Company directors with equal shareholding but paid in pension in just my name the company only subscribing to it with no employee contrabutions as advised at time, no death benefit built into the scheme. I have talked to two people and I think I knew more myself I'm amazed at the lack of information that my broker who sold me this as a matter of fact only due to my own diligence it has kept most of it's value during the crash.

If I was in your situation I would cease paying into your existing pension plan, set up a new executive plan and once that has received revenue approval and premiums are being collected I would then transfer the benefits from the old scheme into a buy out bond. Build in death in service benefit on the new plan and both yourself and partner contribute into it. Sounds like the business is profitable so this is still the most tax efficient way to extract profits as opposed to taking it as income

Thank you Leroy67 I will have to go back to my broker with this suggestion even though I had suggested something like that to him already and after a bit of 'heing and hawing' he said I would not be allowed to do this. I find it very hard to find somone (that is not involved with a pension company) who knows what they are talking about and dont have their own agenda.

Where are you based Hans. surely has to be more than one broker in the area?