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 205 | Pensions and Small Business – Ticking Time Bomb or Hidden Treasure? Retiring attitude I n the Forum’s research, we found that more than a third (35 per cent) of business owners expect they will be working beyond 70 years-old – or have no intention of retiring at all. In our supporting, broader, survey undertaken on our behalf by YouGov, this number increased to 42 per cent. For those surveyed who don’t own a business, or are younger, you would expect less ‘connection’ with the workplace, and the YouGov statistics show fewer intend to carry on beyond 70. But where will their retirement funding come from? The new state pension is £155.65 per week, which equates £8,093 per year 2 . The average pension pot of an SME director currently squirreled away in the UK will pay out an annuity of £3,227 3 . More than half of those Forum business owners surveyed (57 per cent) said they anticipated that a pension pot below £500,000 would fund their retirement – and even if this princely sum would only pay out £25,000 a year from retirement age. Significantly less than these business owners would be used to paying themselves. These relatively modest numbers illustrate that those expecting to live the same lifestyle on a combination of pensions annuity and state pension may be misguided. Perhaps the older SME decision maker can see a more realistic scenario. The YouGov research finds that 41 per cent of those surveyed who are 55 years-old+ expect to work beyond 70, compared to just 25 per cent of 35-44 year-olds. We will discuss later whether they feel their age restricts them from being able to make longer-term investment decisions. So, is the potential of inadequate pension funding the key reason people expect to continue working beyond 70? In part, yes. But there are other factors to consider. Of those looking to work beyond 70, many said they enjoy working too much to retire (34 per cent Forum; 39 per cent YouGov);  2. The New State Pension, What You’ll Get: https://www.gov.uk/new-state-pension. 3. The average SME director has £117,000 in accumulated pension pots according to Clifton Asset Management client base of 2,000 businesses. 42% 35% Business owners that expect to retire after 70, or have no intention of retiring. YOUGOV FORUM