Most leaders of small and medium-sized businesses plan to work past the age of 65, according to research.
A 2018 survey by Aldermore of 1,008 senior SME decision-makers revealed that 73% of business owners are planning to work past their state pension age.
Almost two-thirds (63%) of business owners would like to retire by 65, but only 37% think they will be able to.
In fact, more than a third (35%) plan to work into their 70s, and 11% believe they will never be able to retire.
SME owners gave various reasons for working longer, with nearly half (48%) planning to do so because they enjoy their work.
However, the decision is based on necessity for many others. In 2017, 40% of SME owners said they didn’t expect to have enough in private pensions and other savings to maintain a decent standard of living in retirement. In 2019 this number had increased to 45% according to a study by the RSA.
The government recently announced that the state pension age would be rising to 68 in 2037, a move that Steve Webb, the Pensions Minister approves of as a way to increase the standard of living by working and saving for longer.
Mr Webb, whilst talking about a 2018 report that the UK has the lowest state pension explained how vital it is that the UK has a sustainable pension system:
“That is why we have to raise the state pension age, provide a simpler, fairer state pension which provides a foundation for further saving, and extend working lives,”
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.
Running your own business can mean long hours and SME owners deserve a relaxing and enjoyable retirement, but it is in their own hands to ensure this happens by planning as far in advance as possible.”
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