Going from personal to company pension

M

mc-BigE

Registered User
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272
Hi,
I have a personal pension plan for the last 10 years (I was a sole trader at that time)
I started my own LTD Company a few years ago and I have been advised (by my bank's pension adviser, not very independent advise!)
to "pay up" my existing personal pension and start my own company pension.
I’ve already been told by my existing Pension company that I can’t transfer funds, just freeze them.

My questions are:

which one to go for?

And if I decided to close my LTD company, what happens to the pension?

I am currently paying 315 a month into my personal pension, and I don’t really want to pay any more than that at the moment because of other cost I have.

All advice welcome.
 
For my money, the advantage of setting up a Company Pension scheme is that it would allow you to increase your input to your pension i.e. higher than your personal allowances. Doesn't sound like this is a priority for you at the moment.
 
G123 said:
For my money, the advantage of setting up a Company Pension scheme is that it would allow you to increase your input to your pension i.e. higher than your personal allowances. Doesn't sound like this is a priority for you at the moment.
Click to expand...

I'm confused? i was told by my "adviser" that by paying a pension from the Company, i am saving over paying out of my net wages?
 
Company pension contribution would be paid by your company from company funds rather than your salary,but no tax liability.Higher contribution levels are allowed from company than from personal.Company pension is set up in trust and is safe from creditors.If your company closes or you cancell contributions company pension is made 'paid up' and you will have various options depending on your circumstances.
At retirement company pension allows you 1.5 x final salary taxfree lump sum & pension from remainder of the fund or arf/amrf options
 
Don't do anything until you get independent professional advice. The stakes are high, and the bank's pension advisor is really just a salesperson.
 
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