Pension contribution

charoniv

I am a consultant and work through a limited company.
I am paid a small salary (about 10k) and take dividends of 30k per annum which is all I need to live on and keeps me in the basic rate tax bracket.
It means that a lot of money is now held in the business.
Due to this I plan to pay 30k into a pension fund from the company - so reducing corporation tax, enabling me to take out 25% tax free when I'm old enough (if that's still available) and also hopefully the money will grow.

Talked to an IFA today who seemed to have done this before.
Said when I take out the 25% tax free then I would have to convert to a drawdown which would mean more expense.
Suggested I go with legal and general as they are probably the cheapest for a 30k investment and offer a good choice.
Suggested his fees would be about 600 in total (invoiced to the company) for the initial investment and the conversion (200 + 400).
No point in making a contribution from the company next year unless I have profit so can reduce corporation tax.

Does all this sound reasonable and is there anything I should question?

dunstonh

Talked to an IFA today who seemed to have done this before.

be hard to find one that hasnt to be honest.

Said when I take out the 25% tax free then I would have to convert to a drawdown which would mean more expense.

There is usually an expense but typically its quite small nowadays.

Suggested I go with legal and general as they are probably the cheapest for a 30k investment and offer a good choice.

Ok, not my choice but then so much about these things is opinion rather than actual pros and cons.

Suggested his fees would be about 600 in total (invoiced to the company) for the initial investment and the conversion (200 + 400).

Seems quite fair.

Does all this sound reasonable and is there anything I should question?

Why L&G?
How much is the product charging?

charoniv

Think he said that standard life were more expensive until reaching about 50k and legal and general had lower charges between 25k and 50k. I'm guessing it's a percentage with a minimum and legal and general reach that minmum at 20k.

He mentioned .7% but I can't remember what that was for.
He said it would be reduced from the standard 1%.
I should have written it down.