New Company Director 53, Whats my pension options

nightrider_1uk_2

Hi

I recently became self-employed at the age of 53, following redundancy. As part of redundancy, I draw previous employer’s company pension.
Business has been reasonable for the first year so I am considering putting some money earned by the new company into a new pension. I was thinking of investing in some commercial property, but how does this work, what do I do with the cash until I have sufficient to purchase my first property. and what do I do with the rental income.
At what point can I draw the rental income as pension
Thanks
Colin

mania112

Commercial Property in a pension is a very complex field, and I suggest you speak to an IFA about the details.

If you're looking to buy a property entirely from your pension - it will take you some time to build up a big enough pot to do so.

So first step is to set up a personal pension, contribute as much as possible, and invest for growth. When the time comes to purchase a property it will require a transfer into a SIPP.

atush

and make sure the company pay into your pension itself, using salary sacrifice if you make contribs, or just the company's contribs (which will mean your company saves NICs as well as the actual pension is a cost so avoids tax for the company too).

If you are in the 40% tax bracket, you will need to inform HMRC to get the extra tax back.