Why it matters
The earlier you start paying into a pension, the longer investment growth has to build on your contributions. Each contribution also gets tax relief.
Pensions & retirement planning for startups
Most founders have no workplace pension set up for them, so they arrange their own. This guide explains how pensions work for founders and the tax-efficient options available.
Founders rarely have a workplace pension set up for them, so a personal pension, or a company pension for directors, is the usual route. Contributions get tax relief, and employer contributions paid by a company are usually deductible for corporation tax and free of National Insurance. A regulated adviser can advise on the right arrangement for you.
The basics
- Personal, self-invested (SIPP) and stakeholder pensions
- Pension contributions paid by your company, a tax-efficient way to take profit out
- Consolidating old or forgotten pensions
- How much to contribute, and the annual allowance
- A retirement plan with a target figure
How to get regulated financial advice
- 1Understand the basics
This page explains what this area involves, so you know which questions to ask an adviser.
- 2Find an authorised adviser
Regulated advice can only come from an FCA-authorised firm. You can search the FCA register, or ask us for an introduction to Equity & General, the firm we have an introducer agreement with.
- 3Decide whether to go ahead
An introduction is free, and you do not have to take one. If you go on to take advice, the adviser explains any fees before any work starts.
Common questions
Can the self-employed and company directors have a pension?
Yes. The self-employed use personal pensions or SIPPs. Company directors can also have their company make employer contributions, which are usually deductible for corporation tax and free of National Insurance. A regulated adviser can set it up.
How much should I pay into a pension?
It depends on your income, your goals and the annual allowance, which is £60,000 a year for most people. A regulated adviser can recommend an amount for your circumstances.
What happens to my old pensions?
They can often be reviewed and, where appropriate, consolidated so you're not paying multiple charges or losing track. A regulated adviser can advise whether that's right for you.
General information only. This page explains a topic in general terms. It is not advice, a personal recommendation or a financial promotion, and it does not invite or encourage you to buy any product or service. Everyone's circumstances are different.
Regulated financial advice can only be given by a firm authorised by the Financial Conduct Authority. You can find one on the FCA register (register.fca.org.uk). Buzz Accounting is not authorised to give regulated financial advice. We have an introducer agreement with Equity & General (E&G), authorised and regulated by the FCA (No. 474163). If you would like an introduction, we can make one.
The value of investments and any income from them can fall as well as rise, and you may get back less than you invested. Your home may be repossessed if you do not keep up repayments on a mortgage. Tax treatment depends on your individual circumstances and may change. Will-writing, trusts and some estate-planning services are not regulated by the Financial Conduct Authority.
