Pensions and Insurance options

L

Liverpool

Registered User
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I am an owner/Director of a limited company and need to start a pension and also take out some life insurance. My key concern is the Life Insurance rather than the pension. I have a no of Queries as follows

1. For a 2 person company do i need a company scheme or should i just take out a standard prsa?

2. Should I treat pensions and Life insurance separately or is it better to get a pension with life insurance included? Is it more cost effective to take out key-man insurance and have the Company pay the premium?

3. I have a no of old pension schemes with companies I have worked for over the years - should I try and resurrect them and start paying in to them or is that possible?
 
Hi Liverpool, the answers as numbered are as follows:

  1. It is an obligation to provide access to a PRSA to your employees...for your own pension, it's a matter of taste...if you plan to invest significant money and use the pension to get money out of the company to you tax-efficiently then a Company Pension would be best but if you just want to throw in relatively small money a PRSA should be fine.
  2. Probably best value if you strip them out separately, you can get tax relief on contributions to both, a key-man policy held by the company may also be useful...this does not provide personal insurance for you/your family though.
  3. You cannot pay into an old company's pension scheme if you are no longer in that company's employment...you could transfer your old company pension schemes all into your new arrangement if you decide to set-up a company scheme now.
 
Thanks South - will investigate the Company Pension . I assume it is more tax efficient for the Company to contribute to my pension rather than doing it myself and claiming tax relief??
 
Pretty much the same either way - if company pays it to you as salary then company can deduct it for corporation tax in the same way it can if the company puts it straight into your pension...the maximum limits are much higher though if company pays it, that is why clients often go for the company pension route rather than individual pension.
 
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