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 2015 | Pensions and Small Business – Ticking Time Bomb or Hidden Treasure? “My wife’s pension pot was at about £50,000. We were looking at a £100 per week payout from 65 years-old,” says Andrew. “When you turn 65, the levels of expense you have - children to help - that amount doesn’t float anybody’s boat.” At this point they were faced with a potentially large bill to lease the essential equipment. “We needed a capital sum now. And we thought we could make our pensions pots work harder than £100 in ten years’ time. There’s a risk, but it’s not really money we can count on anyway.” The Tarlings placed a total of £150,000 into a SSAS set up by Clifton (see case study opposite for more details). If their ice cream business, Ecco Gelato, works, it will pay back into the SSAS over a five-year period. “The gelateria is paying back the money, our pensions will still be there and in theory we can take out profits from the business itself,” Andrew concludes. “ The gelateria is paying back the money, our pensions will still be there and in theory we can take out profits from the business itself ” TIPS FOR OLDERPRENEURS Lifestyle: How do you want to live your life? Considerations about health, family & friends, location, hobbies and leisure are a good starting point when weighing up whether you can afford to follow your desired path. Take stock:Doyouunderstandthecurrent valueofyourassets,betheyyourbusiness, property(residentialandcommercial), pensions,orinvestmentfinancialproducts? Ascertainingthecurrentvalueofyourassetsis thenextsteptowardsachievingyourlifegoals. Entrance and Exit point: Entrance: It’s never too late to become an entrepreneur or keep growing an established business, but match this desire with what sort of lifestyle you want to achieve. Running a business can provide flexibility, but making it a success can lead to long hours. Exit: When will you want to exit the business? Almost two thirds of business owners in our Forum survey want to sell their business, and a third want to pass it on to a family member. Be clear about your path and succession plan from the outset. Take a holistic approach to your assets: Can some of them be leveraged to make others work harder? Reconnect with your pension pot: It’s not dead money, and could be the difference between a funded and successful business and a struggling one. Ask yourself if your pension pot is too little to fund you in retirement – and are you willing to leverage that pot, or other assets at your disposal? Seek advice: Work with a trusted adviser and consider accessing dedicated small business support from business groups and professional bodies.