Joint pension fund for SME directors?

We have a small family business and are thinking of starting pensions. Can we have set up a company pension scheme which we could both pay into?

We'd like to eventually use the fund to buy a property so would prefer to 'save' together.

Henry Ford III

Deleted User wrote: »

We have a small family business and are thinking of starting pensions. Can we have set up a company pension scheme which we could both pay into?

We'd like to eventually use the fund to buy a property so would prefer to 'save' together.

Yes you can.

If it's a ltd. co. it's probably best to set up an occupational scheme with the employer to pay the premiums.

Thanks Henry,
Very useful info. Eventually - after we've built up a fund, and property has crashed a couple of times - we were thinking of buying an apartment to let out using the funds. Quick Google search suggests Standard Life's Direct Property fund lets you do this (although there are strict Revenue guidelines on who you can let to etc. and fees look pretty high).
That's for the longer term but will look into the occupational scheme you mention. It's a ltd company and we are both directors and, most of the time, the only employees.

ANXIOUS

Deleted User wrote: »

Thanks Henry,
Very useful info. Eventually - after we've built up a fund, and property has crashed a couple of times - we were thinking of buying an apartment to let out using the funds. Quick Google search suggests Standard Life's Direct Property fund lets you do this (although there are strict Revenue guidelines on who you can let to etc. and fees look pretty high).
That's for the longer term but will look into the occupational scheme you mention. It's a ltd company and we are both directors and, most of the time, the only employees.

You should explore the option of setting up a SSAP, these can hold direct property also. Depending on the level of contributions or possible transfers in from existing pension assets could work out more beneficial. Probably best to discuss with a financial advisor with area expertise.

Thanks for the replies. Can I ask just one more question - and then I'll stop extracting free advice?!

Do I need to get a broker/advisor or can I go directly to pension companies? I found some interesting options on Standard Life's website but when you look for contact details they seem to suggest finding an advisor in your area.

My only hesitation is whether this adds much cost and, maybe more importantly, how do I know whether I'm getting someone with the right kind of expertise?

Henry Ford III

ANXIOUS wrote: »

You should explore the option of setting up a SSAP, these can hold direct property also. Depending on the level of contributions or possible transfers in from existing pension assets could work out more beneficial. Probably best to discuss with a financial advisor with area expertise.

SSAP's tend to be pretty expensive. Compliance costs are also pretty high - for example you need to get a very costly actuarial valuation done even if there have been no transactions.

Standard Life deal solely with the intermediary market OP. Get a good one.

ANXIOUS

Henry Ford III wrote: »

SSAP's tend to be pretty expensive. Compliance costs are also pretty high - for example you need to get a very costly actuarial valuation done even if there have been no transactions.

Standard Life deal solely with the intermediary market OP. Get a good one.

I know exactly what you need and that's why I said it was dependent on the level of contributions and calling actuarial valuations 'very costly' is misleading.

As mentioned before contact a financial advisor who could help you with the pension piece the most beneficial thing you could ever do is get great advice first time around.

ANXIOUS

Deleted User wrote: »

Thanks for the replies. Can I ask just one more question - and then I'll stop extracting free advice?!

Do I need to get a broker/advisor or can I go directly to pension companies? I found some interesting options on Standard Life's website but when you look for contact details they seem to suggest finding an advisor in your area.

My only hesitation is whether this adds much cost and, maybe more importantly, how do I know whether I'm getting someone with the right kind of expertise?

I'd personally stay away from SL for direct property, fine to build up your fund to get to the level you need to purchase the property but too expensive from there on. Only some life offices will deal directly with customers some you must go through a broker or agent.

You'd really need to give more information so that you could get relevant advice. Such as age, have you any existing pension assets and what product are they held in, level of contributions and also property price you are looking at.

Humour Me

You need to talk to an independent financial advisor. They will give you advice with the option to pay a fee directly or for them to earn commission on any products you purchase through them. I would speak to your accountant to see if they have any recommendations.

The tax implications are important as you will save paye on pension contributions you pay from your salary, but will still be subject to PRSI/ USC. If the company pays contributions on your behalf, you may be able to save corporation tax. You really should run the numbers to see how you can maximise relief.

Henry Ford III

ANXIOUS wrote: »

I know exactly what you need and that's why I said it was dependent on the level of contributions and calling actuarial valuations 'very costly' is misleading.

As mentioned before contact a financial advisor who could help you with the pension piece the most beneficial thing you could ever do is get great advice first time around.

I maintain all acturarial valuations are very costly. I've seen a few here and there. Transaction levels are unimportant.

Have you evidence to suggest otherwise?

ANXIOUS

Henry Ford III wrote: »

I maintain all acturarial valuations are very costly. I've seen a few here and there. Transaction levels are unimportant.

Have you evidence to suggest otherwise?

What is your definition of costly? How much did the actuarial valuations that you've seen cost?

Henry Ford III

ANXIOUS wrote: »

What is your definition of costly? How much did the actuarial valuations that you've seen cost?

€3000+

The J Stands for Jay

Don't forget you'll be very unlikely to find a lender willing to bet on board. You'll need to fully fund the purchase from your pension.

Thanks - yes, it seems those days are gone. Probably for the best...

Have found an adviser/broker so will see where that takes me. Appreciate the feedback here