Small business owners to work longer, but they like it
This chimes with the recent data from the government’s Wealth and Assets Survey showing that three in four self-employed people aren’t investing into a pension.
The Aldermore report surveyed over a thousand business owners across the UK, found that almost while two-thirds (63%) would like to be retired by the time they are 65, less than two fifths (37%) of respondents believe they will be able to do so, and more than one in ten (11%) maintain that they will never be able to retire.
Where they plan to continue working, over a third (35%) of business owners say they need to do this to fund their later years, with (34%) saying they will have to work in order to have a nice lifestyle.
For many, working longer isn’t a burden – nearly half (48%) of those surveyed said they like working, and almost a third (31%) enjoy the daily challenges their business offers them.
When asked how they will finance their retirement, over two fifths (46%) plan to use their personal or state pension, with one fifth (21%) dipping into other savings or investments. Over one in seven (15%) plan to sell their business or property.
Carl D’Ammassa, group managing director of business finance at Aldermore, said: “Planning for retirement is at the top of everyone’s agenda once they reach a certain age, and it is a time that can be fraught with difficulties and concerns. It is understandable that in this current economic climate and with the UK’s ageing population, more SME leaders are working long after the state retirement age in order to make ends meet, with over one in ten also required to provide financial support to family members.”
“Despite a significant number of business owners having to work throughout their later years, it is encouraging to see that so many of them are still relishing the opportunity to be their own boss and lead the way well after they are 65.”