Making the annual allowance work for business owners

Making the annual allowance work for business owners

Matthew Barrand Retirement

Running a successful business is hard work, so it’s  understandable that most entrepreneurs are much  more focussed on the here and now rather than  planning for their retirement.

As business fortunes fluctuate, this is where carry  forward can come to the rescue. In more prosperous  years, it allows clients to play ‘catch-up’ by paying  much larger contributions into their pensions to  compensate for underfunding in previous years  when available funds were invested in their  business. This not only boosts their retirement  funds, but could also save them a lot of tax too.

Some clients may see their business as their  retirement fund, but not everyone will be able to rely  on this; things may not work out as planned. Saving into a private pension alongside their business  should prove a less risky strategy.