Planning for your retirement

Retirement is a big change. For business owners, retirement isn't just leaving behind your career but your business too. This can be emotionally tough when you have worked so hard to create the successful company you have today. However, it doesn’t have to be tough financially.

Business owners should be pension planning from day one

As a business owner, pension planning should be an integral part of the overall business plan. One of the biggest risks you face in retirement is running out of money. This happens when you’ve made no plans at all, wrongly assume the amount you have saved is enough, or don’t take in to account longer life expediencies and rising costs. If you don’t start your pension until you’re 50, you may need to save three times as much each month to get the same pension pot as if you had started just 10 years earlier.

The value of pensions and the income they produce can fall as well as rise, you may get back less than you invested.
Tax treatment varies according to individual circumstance and is subject to change.

"My business is my pension"

Pension funds can form part of your exit strategy. If you plan to sell the business as one way to fund your retirement, paying large contributions into your scheme can provide a pension and reduce the capital gains tax when you sell.  There are decisions to be made in and around legacy planning, and it’s important to understand that if you decide to sell your business, you can never predict what it will be worth.

Saving for retirement

Changes to pension and tax legislation have meant business owners are able to take much more control of their pension arrangements. Did you know you can use pension funds to help finance your business? You may be able to set up a small self-administered scheme, which is tax efficient and can hold up to 5% of assets in the business. Retirement planning should play a big part in how to finance your business and how to eventually realise the value you have built up in it. The value of pensions and investments and the income they produce can fall as well as rise.

 

Expertise for big life-changing decisions

Financial planning gives businesses confidence when making life-changing decisions that impact on life goals. Our business clients use Unividual to bring order to their finances, gain objectivity, proactively plan for anticipated events, gain access to invaluable resources and to collaborate with. We are always free to talk, you just have to take the first step to get in touch.

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