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 203 | Pensions and Small Business – Ticking Time Bomb or Hidden Treasure? Working beyond retirement U ncertainty and freedom seem strange bedfellows, but they are inextricably linked. We live in a world where people are living longer, real wages are falling and standards of living are static. Political, social and economic concerns are brought to us on a daily basis via our smartphones and laptops – the same devices we also use to purchase food, clothes and white goods. Among all this uncertainty and change affecting our working and personal lives, some are taking the opportunity to better control and manage their future. For example, entrepreneurial spirit is thriving: there are 4.8 million self-employed people in the UK, of whom three-quarters are full-time (Office of National Statistics). The self-employed numbers are flourishing for a number of reasons, including: job stability is now an old-fashioned term; the attraction of selling products and services via global, online marketplaces; and companies looking to be more flexible by hiring fewer full-time employees. And the defined benefit scheme, offering a lucrative income on retirement based on final salary - a key retention tool for businesses, is now a rarity due to its prohibitive maintenance cost. While being self-employed might seem ‘trendy’ to some, it is not a phenomenon solely of the young – ‘Olderpreneurs’ are flourishing. An olderpreneur, self-employed and 50+ years old, represents a staggering 1.8 million people in the UK (in 2015), up 21 per cent on 2008 1 . These olderpreneurs are among the first to have more freedom to manage their future funding. Pensions Freedom was introduced by the UK Government in April 2015, enabling people to take more control over their own pension pots. Rather than relying on this pot to fund an annuity, the new regime provides individuals with options – including drawing down the pot or taking out ad hoc lump sums. But where there is freedom, there is uncertainty and risk – olderpreneurs are faced with ‘myriad’ choices about securing their financial future. There is not a one-size- fits-all approach, and some could lose out if they make the wrong choices. The Forum of Private Business’s detailed research, in conjunction with Clifton Asset Management, sets out to understand business 1. According to the Office for National Statistics, there are now nearly 1.8 million self-employed people over the age of 50, an increase of 21 per cent on 2008 -