The Insured Executive Retirement Plan is a pension structure held with a life assurance company and is available to company owners and employees. The main benefits of these types of retirement plans are as follows:
- They facilitate funding for retirement.
- They can reduce both corporate and personal tax rates.
- They allow the holder access to a range of funds provided by that life company.
- They enable the holder to extract funds from a company without any income tax liability.
- They allow for significantly greater levels of pension contributions than personal pension structures.
- A portion of the fund may be taken as a tax-free lump sum at retirement.
- They allow for potential transfer of assets to next of kin.