This Valentine’s Day, why not give your pension a nice big hug!

All too often people make contributions to pension arrangements that seem like a good idea at the time but fail to review them regularly. Consequently many individuals build up several different pots and completely lose track of what’s been invested and lose interest, resulting in large sums of money that are unloved.

If you run your own business, particularly in this uncertain age, it may be a good time to look at how these unloved pensions could be put to good use in your business.

If you or your business owns the property from which you trade, did you know that you can arrange your pension affairs so that the pension buys some or all of that property? This could provide a much needed boost of cash for the business. It is also possible for the pension to purchase land.

In some circumstances some pension arrangements allow loans to be made to the sponsoring Company subject to taking a charge on a suitable property. This could be a more attractive alternative to traditional bank finance. This is particularly relevant to limited companies where shareholding directors can combine their pension assets.

If you are considering purchasing commercial premises have you explored the tax advantages with using a pension fund to make the transaction rather than purchasing directly?

Nothing in life comes without risk, and you need to work with a good advisor who will take you through the risks and implications of this type of planning. At Wright Vigar we work with specialist financial advisors who will be able to advise you on your own personal circumstances and encourage you to look at your pension provision in more detail.

If you do nothing else, brush the dust off those unloved pensions and give them a Valentine’s Day hug, you may be pleasantly surprised.