Income changes year to year
Contribution plans need room for strong trading years, quieter periods and changing drawings.
Set a funding rhythm that can be reviewed against actual results.
Pension planning for business owners
Retirement planning for company directors, sole traders and business owners
Your income can change with the trading year. The pension decision has to sit alongside company cash flow, tax planning and the value tied up in the business.
Mark's Pensions helps directors and self-employed clients set a retirement direction that reflects how their work and income actually operate.
We can coordinate pension planning with your accountant. That keeps tax and funding decisions connected to the same business facts.
A different set of moving parts
Why business owners plan retirement differently
The business may be your largest asset, but it may not be available as retirement income when you need it. Start with the full picture.
Business value can be hard to access
A valuation on paper is different from funds available to support your household.
Test what an exit could leave you with after the transaction.
Funding choices interact
Company contributions, personal saving and drawings need to be considered in sequence.
The right route depends on your circumstances and current rules.
Exit dates can move
Health, family needs or market conditions can change the timing you first had in mind.
Build flexibility into the years before a planned transition.
The business is an asset.
Company directors
Executive pension arrangements need a clear funding basis
An executive pension arrangement may allow a company to fund retirement benefits for a director. The appropriate structure and funding depend on the arrangement, your service and remuneration, company profitability, and applicable pension and tax rules.
We look at company funding alongside personal contributions from net income, then identify what needs to be checked with your accountant before a decision is made.
What we review
Funding needs a framework.
- How service history, remuneration and company results affect the options to examine.
- Whether earlier retirement contracts from previous employment need to be included in the review.
- How company cash needs and personal retirement aims fit together before setting a funding level.
- Which questions to take to your accountant before acting on a tax-sensitive decision.
Independent earners
Sole traders, contractors and independent professionals
When there is no employer setting money aside, you have to make a plan that fits the way your income arrives.
Regular contributions can build a habit during stable months. In a stronger year, you may want to review whether additional funding is appropriate. Leave room for quieter trading periods and keep enough working capital for the business.
A personal pension contract or a PRSA may suit different flexibility needs. The choice depends on your circumstances, contribution pattern and current rules, so compare them before committing.
Timing matters. Pension contributions sit alongside income tax and preliminary tax cash flow; allow for those dates when deciding what the business can afford.
Build around uneven income.
Prepare before a decision is urgent
Succession, business sale and exit preparation
Retirement funding and ownership transfer are related, but they are different decisions. Give both enough time.
Starting several years before an intended transaction gives you time to examine funding years, likely proceeds and the income you may need after work changes.
Clarify the destination
Set out the retirement timing you are aiming for and the income your household may need.
Read the planning detail
Include existing pensions, savings, property and any State entitlements in the initial discussion. Record what is known and what still needs checking.
Sequence funding and transition
Consider pension funding years alongside the timing and structure of a sale or succession.
Read the planning detail
For a family business, distinguish the value being transferred to the next generation from the funds intended to support your retirement.
Plan around the proceeds
Test how potential exit proceeds could sit beside your other retirement resources.
Read the planning detail
Sale values, timing and tax treatment can change. Your accountant and other relevant advisers should review transaction assumptions before you act.
Start before the sale.
A joined-up projection
Model personal and business assets together
One household projection can bring pensions, investments, property and business value into the same conversation.
We can compare an earlier retirement, a later exit or a gradual reduction in working hours. Each scenario tests a different set of assumptions, including the income still coming from the business and the funds available outside it.
Review the figures each year against actual drawings and trading performance. A projection is a planning tool, not a promise about future investment returns or sale proceeds.
One picture. Several scenarios.
Illustrative planning view
Choose a planning scenario
Phased reduction in working hours
Review how lower drawings could affect household income while pension funding and business cash needs continue.
Pensions and savings
Property and household needs
Business value and cash flow
Timing and working pattern
The display is illustrative. Any projection depends on information and assumptions agreed for your circumstances.
A practical next step
Review how your pension and business plans fit together
Bring your current pension details, a view of company cash flow and the decisions on your horizon. We can identify what to review and what needs a discussion with your accountant.
Mark's Pensions works alongside your accountant; pension advice does not replace their tax or accounting advice. Make decisions only after the relevant details have been checked.