ENABLING YOU TO LEAVE ON THE RIGHT TERMS

"If you rely on the basic state pension, you will retire in abject poverty"
Jeff Rooker
One time UK Pensions Minister

Jeff Rooker's statement,might equally refer to the pension provision of many business owners, who have placed an unrealistic and often unhealthy reliance on their business providing their retirement fund.

The UK's acknowledged premier pension scheme, the final salary scheme, will provide for its' members, in most cases after 40 years of service, an income equivalent to two thirds of their 'final salary' when they retire. What proportion of the current working population in the UK will experience the joy of retiring on this maximum two thirds of their pre-retirement income? LESS THAN 2%!!

For the balance, the only thing we can be virtually certain of is that, despite hopefully, the end of mortgages, school fees etc., income in retirement will be significantly less than it was before.

Therefore, regardless of what existing retirement planning is already in place, we carry out a review of that irrespective of any other considerations and advise accordingly. The type of arrangements that might exist in the average SME or 'closely held' company might include the following :

1. Personal Pension Plan (PPP)
2. Executive Pension Plan (EPP)
3. Small Self Administered Scheme (SSAS)
4. Self Invested Personal Pension (SIPP)
5. Stakeholder Pension
6. Retirement Annuity Contract

And perhaps less likely:

• 1. Group Money Purchase Scheme
• Final Salary Scheme
• Funded Unapproved Retirement Benefit Scheme (FURBS)

It is unwise to place too great an emphasis on the perceived value of one's business to make up the shortfall. It may not happen!