When Push Comes to Shove, Who Really Needs That Pension Contribution?

Ah, the age-old dilemma: when your business is on the ropes, do you keep paying into your pension, or do you keep the lights on? Enter Adrian Boulding, the pension consultant who, surprise, surprise, advises you to keep those pension contributions flowing. After all, he's got his own bills to pay, and you wouldn't want to be the reason he misses out on his cushy retirement, would you?

Of course Boulding would say that. His livelihood depends on you continuing to funnel money into your pension. There might be just the tiniest whiff of a conflict of interest here, don’t you think? It’s almost as if he’s suggesting that your business can’t afford to stop pension contributions because—wait for it—he gets paid when you keep them up. Funny how that works, isn’t it?

But let’s get real for a moment. When it comes down to it, who needs the money more: you or your pension consultant? You’re the one fighting to keep your company alive, to keep paying your staff, to keep food on your own table. Meanwhile, your pension consultant—well, let’s just say he’s not exactly counting his pennies, is he? Ever heard the tale of “Where are the clients’ yachts?” It’s a classic. The financial consultants have all the yachts, while their clients are still dreaming about one day owning a dinghy.

Now, let’s be clear: there are indeed benefits to keeping those pension contributions going.

Tax relief is nice, and yes, a well-planned pension can set you up for a comfortable retirement. But when the chips are down, and you’re staring at a cash flow crisis, who are you really looking out for—your future self, or the guy who profits from you thinking about your future self?

Boulding trots out the usual suspects: the Sipp and the Ssas. Fancy financial instruments that, in theory, let you keep your pension pot growing while also freeing up some cash for your business. A Sipp might buy your office from you, leasing it back so you can keep the business ticking over. It’s a neat trick, and it might just work—if you’ve got a specialist surveyor, a tax planner, and a bank that’s willing to lend to your pension. But let’s not kid ourselves: it’s your money, shuffled around with a bit of financial wizardry, and in the end, you’re still the one taking the risk.

And what about the Ssas? Pooling your pension with your fellow directors, your family, maybe even your neighbour’s dog for all it matters, just to have a bigger pot to play with. Great in theory, but when your company is struggling, is this really the time to start playing Monopoly with your retirement funds?

The bottom line? Boulding wants you to keep paying into your pension because it’s good for business—his business. But when it comes to choosing between your pension consultant getting paid and you keeping your business afloat, the choice seems pretty clear. Pay yourself. Prioritise your business. You can catch up on your pension when the storm has passed, and believe me, your pension consultant will still be there, ready and waiting, yacht in tow.

So, next time you’re weighing up whether to pause those pension contributions, just remember: it’s your money. Don’t let anyone tell you otherwise. And certainly don’t let anyone else get rich at your expense.