Limited Company director. Pension options

M

MeathCommute

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Hi. I worked for a major bank for 31 years and left on voluntary redundancy 5 years ago. 2 years ago I got back in as a contractor, and there have been no further pension contributions. My preserved pension is worth 30k a year, payable at 60. I'm currently 53. My contracting savings are currently 70k, sitting in a business account. I have until the end of the year to start dispersing this money. Any advice on what the best option would be? I am married, with no kids. Mortgage paid. My wife earns very little. Can I open an ARF payable in my 50s sometime? I'm just conscious that my contracting may dry up?
 
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It's worth looking at this with a proper financial advisor, together with your overall pension arrangements to calculate the maximum your company can tax efficiently put into your pension.
With a director's pension, you can start drawing the benefits anytime in your 50's, but company can't contribute anymore from that point.
If you don't have a need for the cash now, a bit of planning will pay off.
 
You can put the money into a company paid pension. As a company director, you can only access before age 60 if you leave your company and sell/ liquidate your shareholding. You cannot draw down from this pension and continue working for your contracting company.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
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