Executive Pensions

Owner-managers, directors and senior managers have a wide choice of pension options to provide for retirement. From April 2006 the choice has become wider, as previous tax rules have been sept away. They have been replaced with a much simpler tax regime with a lifetime allowance (£1.6 million in 2007, rising to £1.8 million in 2010) and an annual allowance (initially set at £225,000) on tax-favoured contributions.

These changes may make some of the rules on existing schemes redundant but there is no reason to suppose the schemes themselves will be swept away, in the short term at least. So for the time being it is advisable to make the most of the present system because lengthening life expectancy means you might need the extra income.

This briefing outlines:

• The key issues to consider in arranging pension savings.
• How to top up your company pension.
• Alternative pension schemes.
• Where to get advice.