Your Trafalgar Company Pension

Introducing Trafalgar & the Danbro Group SIPP


Trafalgar is part of The Danbro Group and as such has access to The Danbro Group SIPP. This is Trafalgar’s comprehensive contractor pension scheme offering. It is a Self-Invested Personal Pension (SIPP), delivered in conjunction with an FCA-regulated platform, providing a flexible, low-charge, tax-efficient way to save for the retirement you want.

The Danbro Group SIPP is the perfect choice for umbrella company contractors. You’ll have access to the full UK fund universe, while bespoke management services are available to individual members. There are a wide selection of discretionary-managed, risk-graded portfolio options with a broad range of responsible and ethical investment choices. You’ll also have access to an exclusive platform for other investment opportunities too.

How The Danbro Group SIPP works:


It is a legal requirement for all UK employers – including umbrella companies – to offer workplace pension schemes. The Danbro Group SIPP is available to all Trafalgar Umbrella employees who are: aged between 22 and the State Pension age; earning at least £10,000 annually (£192 per week); and who are not currently enrolled in another workplace pension.


You will be enrolled in The Danbro Group SIPP automatically – 12 weeks after you register with Trafalgar, though you do have the option to join anytime within the first 12 weeks. Once enrolled, a percentage of your pay will get deducted each payday and put straight into your pension pot. The importance of starting your retirement savings early cannot be overstated, especially for umbrella company contractors. Enrolment in The Danbro Group SIPP will not affect your State Pension.

Opt-Out Options

Enrolment in The Danbro Group SIPP is compulsory, if eligible. However, you can opt-out within 30 days. If you do choose to leave within the first month of enrolment, you’ll get back the money you’ve contributed up to that point. You can cease your auto-enrolment at any point thereafter but will not be able to withdraw funds until the age of 55. Conversely, if you do opt-out and then change your mind, you can choose to re-join the scheme at any time.


Employer’s pension contributions are deducted from your contracted rate. This is the total amount that we receive from your end client or agency. Other employer’s expenses deducted at this stage include Employer’s National Insurance contributions (NICs), the Apprenticeship Levy payment, and our margin. We then pay the full pension contribution as an employer payment. That way you’ll save both tax and NICs on the whole contribution before you get paid.

Employer Contributions

The minimum amount that’s payable into your workplace pension is 9 % of the National Living Wage/National Minimum Wage.


You do not need to retire to draw on your fund. You can start drawing SIPP benefits from the age of 55 (rising to 58 in 2028) and you can continue contributing while drawing benefits. Once you reach 55, you’re entitled to take up to 25% of your fund as a tax-free, lump-sum payment. However, any withdrawals beyond that 25% are then taxable. Note, though, that if you do take your pension early – and therefore reduce the length of time that you invest funds into the scheme – the benefits may not be as high as anticipated.

Tax Relief

To gain tax relief on your Danbro Group SIPP contributions, there’s a ceiling on the amount you can pay into the scheme each year. Referred to as the ‘annual allowance’, this equates to the lower of either 100% of earned income or £60,000 per annum, which includes both personal and employer contributions. Of course, the more you choose to pay in, the greater the benefits will be come your retirement. However, if you’ve taken any income from your pension by way of ‘flexible access’ (drawdown), then your Annual Allowance will reduce to £10,000. Likewise, if you’re a higher earner, your allowance will be ‘tapered’. Furthermore, if you make payments above the Annual Allowance, you will be liable to pay a tax charge on the excess.

Fund Allocation

In the unfortunate event of your passing, the funds remaining in your SIPP (either untouched or in drawdown) will be transferred to your beneficiaries under a tax-free ‘flexible trust’, should you pass away before the age of 75. If you were to die after 75, your beneficiaries will pay Income Tax on anything they take out of the remaining fund as income. Be sure to complete your death benefit nomination form when prompted.


As with any investment, private pension schemes carry risks. We are not experts in other types of private pension schemes, and we’re not here to tell you to take out a private pension either. Nor are we attempting to provide detailed information on any private pension options other than The Danbro Group SIPP. For comprehensive retirement planning and understanding of private pension schemes, seeking expert financial advice is highly recommended.