Less and less self-employed people are saving money for their retirement, according to figures from the Office for National Statistics (ONS).
ONS figures reveal that the percentage of self-employed people paying into a pension plan dropped from 64% to 49% between 1998 and 2004. The figures also suggest that more than half self-employed women lack private pension provision of any sort.Mace & Jones pension law specialist Roderick Ramage said he was concerned about the retirement provision of business owners.'This is a serious problem, particularly as a pension scheme can be a tax-efficient way of directing savings back into a business,' he said. 'But the bottom line is that business owners are entirely reliant on their own resources for making plans to save for their retirement.But many bosses are failing to apply the same rigour and discipline to organising their personal finances as to the running of their business. As a result entrepreneurs are seriously underestimating how much money they need to fund an early and comfortable retirement.Ramage added that small business owners often wrongly assumed that they could sell their business to fund their retirement.'The harsh reality is that as retirement approaches, many small-business owners find that their business is not as saleable as they thought. Frequently the problem is that the business owner is the chief asset and without them the business is worth little.'