Do your senior members of staff need a new financial plan?

Do your senior members of staff need a new financial plan?

Published: 03 May 2019 Updated: 13 Jun 2022

Pension allowance issues

Usually you can pay as much as you earn each year into a pension, up to a maximum of £40,000. However higher earnings can mean a reduced annual pension allowance. People who have had rapid pay rises may have a much lower annual allowance than they expected, resulting in a surprise tax bill if the allowance is breached.

Many of your senior members of staff may also be approaching the pension lifetime allowance of £1,055,000. Do they understand the implications of this or how employer-provided death in service benefits can affect their allowance? Many company executives expect their employer to provide guidance in this area, but most employers are not keen to become involved in what is really a personal issue.

A possible future Inheritance Tax bill

The nil rate band is the personal allowance that is free from Inheritance Tax. It is currently £325,000 per person. Large pay rises can lead to rapidly growing estates which are likely to exceed the nil rate band, so senior staff members may need to take action early to avoid a big Inheritance Tax bill further down the line.

Financial protection

People usually take out protection to maintain financial stability for their family, whatever may happen in the future. It’s important that this protection is reviewed regularly to ensure it remains suitable.

Your investments

It can be difficult for investors to contribute a new and large lump sum without their portfolio drifting out of line with their aims, circumstances and risk tolerance. This is why many company executives choose to get expert help with their investments.

Tilney can help

Our financial planners and investment experts can help your senior employees with all of this and much more. We can also run educational seminars or clinics for your executives at our office or yours. These can help to ensure your key staff are aware of any potential opportunities or issues. Find out more by contacting Neil Wilkie by calling 0141 227 8026 or emailing


This article was previously published on Tilney prior to the launch of Evelyn Partners.