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 2013 | Pensions and Small Business – Ticking Time Bomb or Hidden Treasure? A generation of successful people are reaching retirement and asking the question: What do I do next? Keith McLean’s mind was made up for him. After just six weeks his partner said to him: “I can’t do this . . . and I want a retail unit.” Keith (aged 68) and Sue joined the new generation of Olderpreneurs on one of the oldest streets in York, launching their Tavern on the Shambles in York, a medieval street mentioned in the Doomsday Book and a magnet for tourists. The Shambles Tavern serves food and over 120 different Yorkshire beers including their own label brews, Shambles Stumbler, Shambles Dark and Shambles Cider. But with ambitious plans to expand, the business needed a cash injection. BUSINESS FUNDING When it came to business funding Keith was in for another surprise. He discovered he could avoid dipping into his pension and paying large amounts of tax by borrowing from his pension instead. He said: “I had worn my pension away significantly by previously taking money at stupid rates of tax.” With help from Pension-led funding7 Keith’s existing pension was transferred to a SIPP and he accessed 50% of its value. RETIREMENT PLANS Keith said: “One, we will be into significant profit. Two, we are building a business that is saleable and three, my pension fund is doing very nicely thank you.” “I see my business as a big facilitator for my pension. I couldn’t get those sorts of returns wherever you invest.” CASE STUDY: Shambles Tavern Keith McLean 7. Pension-led funding carries the same risks to the borrower as other commercial credit facilities