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Pension Scheme Design

The Opes Wealth Trust team have an extensive background in the area of retirement planning and pension scheme design. We consider retirement planning as a central part of our advisory business and provide scheme design solutions to business owners, corporate executives and self employed individuals.

Our team of experienced consultants will assist you in designing the retirement solutions that meet your requirements and your businesses needs. Our areas of expertise include:

  • Single or multi member occupational pension schemes, both defined benefit and defined contribution schemes.
  • Hybrid versions of the above offering, large and Small Self Administered Schemes, Self Invested Personal Pension Plans and Personal Retirement Savings Accounts.
  • Post Retirement Vehicles such as Approved Retirement Funds (ARF)

In structuring the most appropriate retirement vehicle the main issues we need to consider include the following:

  • The level of available income to invest
  • The term of investment
  • Status of employment
  • Investment philosophy
  • Attitude to risk
  • The tax position of the individual or the business

What is a defined contribution scheme?

This is a plan in which the employee’s benefits at retirement are based on the following:

  • The level of retirement contributions made during membership of the plan
  • The investment performance of the assets of the plan
  • Annuity/Interest Rates on date of accessing fund

Like a savings plan, a defined-contribution scheme has a specific balance at any given time depending on the investment performance of the pension fund. Depending on the type of Defined Contribution plan (i.e. a Self Administered Scheme or an ‘Insured Scheme’ with a life assurance company) the member will have varying levels of control over how the contributions of their plan are invested.

What is a defined benefit scheme?

This type of retirement plan provides a pension to retired members on the basis of a pre- agreed formula based on the following:

  • Number of years membership by the individual of the scheme
  • The members income (typically at retirement)

The contributions are generally made by both the employer and employee. However, the Employer is generally responsible for determining what level of contributions are required to provide the promised benefits to existing, previous and future employees.