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 207 | Pensions and Small Business – Ticking Time Bomb or Hidden Treasure? When a plan doesn’t come together… S o, the scene has been set. Many business owners and decision makers predict they will work beyond 70, or never retire at all. The vast majority have invested into pensions, but the maths suggests that the return will be underwhelming. Many expect to outlive their funds. What are the other options available to the olderpreneur? What other assets do they have at hand, and have they considered them in their grand funding plan? The most fundamental choice already outlined is to work beyond normal retirement age. The Chief Medical Officer’s latest annual report indicates the benefit of being active, social and having goals and pursuits in later life 4 . However, the report also reveals that 42 per cent of employed people between the ages of 50 and 64 are living with a health condition or disability. Nearly half of those not working at that age cite ill health as the major contributing factor. The wellbeing of others is also a consideration. One in four women aged 50- 64 have responsibility caring for another, compared with one in six men (ONS 2011). The likelihood of illness or disability must be considered a key risk for those looking to continue working to fund their life beyond 70. “There is definitely a tension between wanting to work into old age, and being physically or mentally able to undertake the work. Health must be factored into planning for the future,” says Adam Tavener, founder and chairman of Clifton Asset Management. Another key financial crutch is investment in residential property, highlighted by 63 per cent of business owners in The Forum research. This may well be a sound investment if you are invested in London, where the average house price now stands at £578,381 – up several hundred per cent since 1996 and now double that of the rest of England and Wales 5 . But property values can go down as well as up – and they may be close to overheating. 4. Chief Medical Officer (CMO) annual report: public mental health, published 9 September 2014 - publications/chief-medical-officer-cmo-annual-report-public-mental-health 5. Lloyds Bank showed that, by the end of 2016, the average house price in London stood at £578,381 - news/residential-property-london-home-prices-now-more-than-twice-national-average-dsapsted “ Health must be factored into planning for the future” ADAM TAVENER, CLIFTON ASSET MANAGEMENT