Do you pay into a pension?
Alarming research from Prudential suggests that as many as 46% of small business owners do not contribute regularly into a pension fund – even though they are self-employed and are not automatically enlisted into a scheme.
The main reasons for this appear to be the fact that many businessowners believe that they are not going to withdraw from work at all – even in later life. Meanwhile, others believe that the pensions amassed while working in other organisations earlier on in their careers will act as a sufficient safety net.
Even more alarming is how 63% of those without a plan do not believe that they will start making contributions in the near future – with the potential to leave them financially susceptible.
Some people from the world of business want there to be a bigger focus on making such contributions, and warn that without careful financial planning – just like the measures taken to pay the correct levels of tax – some entrepreneurs could receive a rude shock when they retire, with far less money than they had originally expected.