This article was published on: 07/17/18
David was a member of his ex-employer’s Final Salary pension scheme. When he left the role, he set up his own pallet company; up until now, his business has been working out of hired premises, however he was keen to purchase the property.
David had read that he could use his pension funds to buy premises for his company and was looking for some guidance.
What did we do?
We met with David several times to get to know him, his business and his aspirations.
During in-depth discussions, we explored the pros and cons of the transfer and what it meant for David’s retirement. After all options we considered, we recommended that David transfer out of his Final Salary pension scheme into a SIPP (Self Invested Personal Pension). This would allow him to use some of his pension fund to purchase the commercial property outright.
The results
David’s pension fund now owns the property his company trades from. The company is the paying tenant, so David now benefits from pension contributions paid in the form of rent by his company.
David now feels much more secure about the future of his own financial arrangements, as well as the future of his business.
