This article was published on: 07/17/18

Why did Chloe come to us for advice?

Chloe’s personal training business had just reached its 1st anniversary and was becoming quite profitable having secured contracts with several corporate businesses.  Now in her late 20’s she realised that at some stage it may be wise to plan for the future.

Chloe had read an article about the advantages of sole traders making pension contributions and although she is many, many years away from retirement she felt that she should explore all advantages to the business, so she decided to contact us for a meeting.

What did we do?

After an analysis of Chloe’s current and future objectives we formulated a “retirement plan” for her which focused upon Chloe making monthly contributions to a personal pension plan.  During the analysis we agreed a monthly contribution level and an investment strategy which would give her the opportunity for strong longer-term investment growth aligned to her risk profile whilst allowing her to focus on the continued growth of her business.

The results

Chloe’s business is now thriving, and her earnings have pushed her just into the threshold for higher rate tax.  However, the monthly pension contribution that she now makes has effectively reduced her earnings back into the basic rate tax and so not only has she created a fund that can build for her retirement, she, is also now benefiting from one of the most tax efficient ways of keeping her income tax down.  Chloe will also benefit from the annual reviews that we have agreed to carry out to make sure that everything is in check.

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