Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20Pensions and Small Business – Ticking Time Bomb or Hidden Treasure? | 12 have heard of pension freedom, only half (54 per cent Forum) knew of Pension-led funding. Clifton Asset Management estimates that business owners have used the freedoms to take over £1 billion from their pension pots to fund new or established businesses over the last two years - many without advice 6 . This has often meant they have incurred a tax charge. One such olderpreneur was 68-year-old, Keith McLean, who funded his Shambles Tavern (see full case study on next page) using the new freedoms. He said: “I had worn my pension away significantly by previously taking money at stupid rates of tax.” Part of the problem is that many business owners like Keith are not getting the right advice. Less than half (44 per cent) have had pensions self-investment broached by either their accountant or business adviser. Peter Seed, who runs PDS Accountancy, chartered accountants, has helped many clients find appropriate funding – and he is greatly concerned at the lack of information that has made it through to the business owner community. “Pension-led funding is often not presented as an available finance option for business owners with a significant pension ‘pot’,” says Seed. “Owners often see their businesses as pensions and don’t realise how their pensions can actively contribute to growing their business in a very efficient manner.  With the right advice, they can actually use their own pension ‘pots’ as a self-funding tool with a much lower effective financing rate than most providers,” he concludes. “ With the right advice, they can actually use their own pension ‘pots’ as a self- funding tool” Business owners that have heard of pension freedom. Business owners that knew of Pension-led funding. 71% 54% 44% Business owners that have had pensions self- investment broached by either their accountant or business adviser. FORUM FORUM FORUM