How much income would you, or any of your employees, need to be able to retire?   With the continuing reduction in State Benefits, it is unlikely that anyone could live comfortably on the State Pension, it is imperative, therefore, that both the owners of businesses and their employees provide a 'second tier' pension for themselves.   Current legislation requires most businesses  to have a Stakeholder Pension in place for its staff to join, should they wish, but at the moment there is no compulsion for you to contribute, although that may change in the not too distant future.   The cost of introducing a pension scheme for your staff can be relatively inexpensive and can also bring additional benefits, such as the retention of key staff.   As far as your benefits are concerned, there are numerous tax advantages to effecting a pension scheme on behalf of yourself and your staff, as the cost of such a scheme is an allowable expense for Corporation Tax purposes.