The Alternet Company Pension
Whilst working your contract through Alternet Ltd, you have access to a non-contributory group personal pension scheme set up on the "No Initial Charge & Flexible" Stakeholder pension basis for total portability and cost efficiency.
Alternet Ltd has set up a Group Personal Pension Scheme with Standard Life because of their excellent track record with their Managed and UK Equity Funds, their financial strength, and flexible external management fund choices.
The scheme has been negotiated with no set up charges, you get 100% Allocation from day one, the only charge to the plan is the underlying Annual Fund Management Charge of the fund or funds chosen (1% per annum for Standard Life funds). There are also no charges or penalties for stopping/starting or decreasing/increasing contributions.
The scheme is an Employer Sponsored pension, Alternet makes the contribution as an employer contribution, so not only do you avoid income tax at your highest rate, but also Employers National Insurance, making it the most cost effective pension option for you.
Your own Personal Pension:
- £500 gross contribution to your own personal pension
- A high rate tax payer claims £200 back (40%) so the net cost is £300
- You will have incurred Employers National Insurance at 12.8% on the gross £500 amount, which is £64, i.e. total cost to you or your Limited Company is £564.
Alternet Company Pension:
- Net cost to you of £300
- £200 High Rate Tax Relief
- Employers National Insurance Reclaim of £64 (12.8%)
- TOTAL Gross contribution of £564
Therefore in the above example you get an extra £64 per month invested into your pension for your own net cost of £300 per month.
As a Basic Rate Tax payer, on a gross contribution of £500 per month, you would also gain the extra £64 per month using the Alternet Scheme, however the net cost to you would be higher at £390 as you only save Basic Rate Tax of 22% of £500 which is £110.
A financial services representative can arrange to meet you to go through your pension options, the appropriate contribution levels to meet your retirement aspirations, fund choice and flexibility, and all the benefits of using the Alternet Ltd Pension Scheme.