Why it matters
Retirement feels far away right up until it isn't. The earlier startups start, the harder compound growth works — and the tax relief on contributions is one of the few genuinely generous reliefs left.
Financial guidance
Pensions & retirement planning for startups
No employer is auto-enrolling you into a workplace pension, so for most startups a pension is something you have to set up yourself. This guide explains, in plain English, how pensions work for startups and the tax-efficient options that exist.
The short answer
Because startups rarely have a workplace pension set up for them, a personal or (for directors) a company pension is usually the answer — contributions are tax-efficient, and for company owners employer contributions are a deductible, National-Insurance-free way to extract profit. A regulated adviser gets yours right.
The basics
In plain English
- Personal, self-invested (SIPP) and stakeholder pensions
- Company/director pension contributions (tax-efficient profit extraction)
- Consolidating old or forgotten pensions
- How much to contribute — and the annual allowance
- A retirement plan with a real target, not guesswork
How to get regulated advice
If and when you want it
- 1Understand the basics
This page explains, in plain English, what this area involves — so you know the questions worth asking.
- 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.
- 3No obligation
Any introduction is optional and free. If you go on to take advice, the adviser explains any fees before anything goes ahead.
Common questions
Straight answers
Can the self-employed and company directors have a pension?
Yes. The self-employed use personal pensions or SIPPs; company directors can also make employer contributions from the company, which are usually corporation-tax-deductible and free of National Insurance. A regulated adviser sets it up correctly.
How much should I pay into a pension?
It depends on your income, goals and the annual allowance (up to £60,000 for most people). That's exactly the personalised question a regulated adviser answers.
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, we can introduce you — that is entirely optional and there is no obligation.
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.
