Corporate financial planning
Corporate financial planning focuses on how your business structures pensions, protection and director planning, so they support both the commercial needs of the company, and the financial security of the people within it.
For business owners, these decisions affect how workplace pension obligations are delivered, how prepared the business would be if a key person were unable to work, and how satisfied employees feel with their benefits.
Corporate pensions and business protection
Employers are required to provide a workplace pension under auto-enrolment legislation. Beyond meeting that requirement, it’s worth reviewing whether your current arrangements suit the way your business operates and the needs of your employees.
The way pensions and protection are set up can influence how employees view their benefits, and how prepared the business would be if circumstances changed.
Workplace pensions
A workplace pension is a legal requirement, but the minimum contribution levels set by legislation may not always reflect the goals of directors or the expectations of employees.
We review how your current scheme is structured and whether it reflects the scale of your company and your long-term plans for it. Directors may wish to plan for their own retirement in a different way to employees, and staff at different stages of their careers may have different expectations of the benefits provided.
Our role is to help you understand how your pension scheme operates, how contributions are structured, and whether adjustments would better support both the business and its employees.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you invested.
Shareholder and ownership planning
If a shareholder dies, their shares normally pass to their estate. Without prior planning, this can create uncertainty for the remaining directors and for the family involved.
Shareholder protection arrangements can provide funds for the remaining owners to purchase those shares, helping to maintain continuity while ensuring the family receives fair value.
Clear ownership planning reduces uncertainty and provides reassurance for both directors and their families.
Business and employee protection
If a key individual is unable to work due to illness or injury, the business may experience financial strain or operational disruption.
Key person protection is designed to support the business itself. This insurance can provide a lump sum or ongoing payments to help cover lost revenue, recruitment costs or temporary cover while that person is absent.
Income protection supports the individual. It can provide a replacement income if a director or employee is unable to work for an extended period due to illness or injury.
Private medical insurance can also be considered as part of a wider protection strategy. For individuals, it can provide access to specialist medical treatment through private healthcare arrangements. For employers, offering health cover can form part of a broader employee benefits package and may support staff retention.
These arrangements address different risks to your business. We consider them carefully in the context of how your business operates and the level of support you wish to provide.
Working in partnership with your professional advisers
Decisions about pension contributions, remuneration and dividends are rarely made in isolation, so corporate financial planning often overlaps with accountancy and tax advice.
We work alongside your accountant and other professional advisers to ensure that financial decisions are aligned and made with an understanding of your overall understanding position.
What to expect
The starting point is a conversation about your business and your priorities. We review your existing pension and protection arrangements and consider whether they remain suitable for your current position. If changes are agreed, we put them in place and explain clearly how they will work.
As your workforce evolves or legislation changes, we revisit your financial arrangements to ensure that they remain appropriate.
If you’d like to discuss how corporate financial planning could support your business and your team, we invite you to get in touch to arrange an initial conversation.
