Small businesses urged to make retirement plans

Few small business owners have put adequate plans in place for their retirement, new research has suggested.

According to Barclays Financial Planning, more than eight in ten sole traders do not possess retirement plans, compared to 63 per cent of limited companies.

Of those people who have put plans in place for their future, almost half of sole traders would welcome the opportunity to sell their business to a new owner, while 14 per cent would consider a management buy-out.

Stephen Ingledew, commercial director at Barclays, said: "Despite being driven within the business world, there is an alarming apathy among business owners with so many yet to consider the future of their company when they retire.

"So many business owners have the financial security of their retirement tied up in their livelihood and it is essential that they plan early so they can determine the best route to release this security or devise a plan that ensures a worry-free retirement," he added.

The group's survey also showed that just over a quarter of female business owners have considered their retirement, compared to almost two fifths of men.

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