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Three In 10 Business Owners Have No Pension



Three in 10 business owners do not have a pension independent of their business, according to Rathbones Group, one of the UK’s leading wealth and asset management firms, warning that millions may be taking unnecessary risks with their future finances.


Rathbones polled 3,092 UK adults, including almost 10% business owners, and also found that 44% do not even hold an ISA of any kind. The vast majority (95%) have money in savings accounts and/or Premium Bonds, suggesting many are prioritising short term cash over long-term planning.


Faye Church, Senior Financial Planning Director at Rathbones, based in Guildford, says:

“We often meet owners of successful businesses who see their company as their retirement plan and prioritise reinvesting back into the business over pension saving. That’s often driven by a desire to grow the business, and the belief that a future sale will ultimately take care of retirement. But relying on a business alone to fund later life is a risky strategy."

“The future is unpredictable. Small businesses can be hit by economic shocks, supply chain disruption, losing customers or a crisis no one sees coming. That makes it hard to know what your business will be worth when you eventually step back – or even whether you’ll be able to sell it at all."


“Without a pension, you could end up with far less to live on than planned, and even a successful sale may still fall short of funding the lifestyle you want in retirement.”


Looking specifically at entrepreneurs, almost a quarter (24%) of respondents said they do not have a pension. More than a third (36%) said they do not have an ISA, although 95% do hold savings and/or Premium Bonds.


Gordon Lawrie, Senior Investment Director and Head of Edinburgh Office at Rathbones says:

“From our dealings with early-stage businesses, there are often many competing financial pressures, from irregular cash flow and reinvesting in the company to paying down borrowing or covering personal expenses,”

“But for limited company owners, contributing to a pension can be one of the most tax efficient ways to extract money from the business and invest for the future.”


Why pensions are still powerful for business owners


Faye Church says:


It’s common for business owners to prioritise tax efficient income today, typically taking a small salary within the personal allowance and the rest as dividends. That approach can create the false impression that pensions aren’t worthwhile, particularly if your salary sits below the income tax threshold. In reality, pensions can be one of the most tax efficient ways for business owners to invest for the future.


Tax relief on personal pension contributions

When you make a personal contribution to a pension, the government automatically adds basic rate tax relief. For every £100 you contribute, HMRC tops it up by £25. Higher and additional rate taxpayers can also claim further tax relief through self-assessment.


Employer contributions from your limited company

Limited company owners can make employer pension contributions directly from the business rather than paying themselves and contributing personally. These payments are made from pre tax profits and do not attract National Insurance. With employer NI set at 15% from 2026/27, this can represent a significant saving compared with taking the same amount as salary.


Reducing your corporation tax bill

Employer pension contributions are treated as an allowable business expense and can be offset against a company’s Corporation Tax bill. Depending on the rate paid, this could reduce Corporation Tax by up to 25%, making pensions one of the most tax efficient ways to extract profits from a business.


Higher limits and more flexibility

Business owners can currently contribute up to £60,000 a year into a pension. The removal of the Lifetime Allowance also means it’s now possible to build a larger pension pot without the risk of additional tax charges. Where a spouse is involved in the business, making pension contributions for them can further improve household tax efficiency.


Why professional advice matters

Pensions can be highly tax efficient for business owners, but the rules are complex and what works best depends on income, profits and long-term goals. Allowances and tax treatments can change, and mistakes can be costly. Regulated financial advice can help ensure pension contributions are structured efficiently and support wider retirement and income plans.



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  • Jan 15, 2024
  • 3 min read

A new poll from international recruitment firm Robert Walters, launched to coincide with Blue Monday has found professionals in the UK & Ireland are increasingly feeling that their employers are falling short in providing help with workplace wellbeing. 55% of professionals think employers should be doing more to help with employee wellbeing – whilst over two-fifths of senior leaders feel their increased spending on wellness benefits is going by largely unnoticed.


Key Findings:


  • 55% professionals think employers should be doing more to preserve employee wellbeing

  • 70% professionals now expect more from employers in this space

  • 58% of managers feel employees are more outspoken than 3 years ago

  • 41% of companies feel their efforts go unnoticed by staff

  • 28% of professionals state that wellbeing has become a ‘top priority’ for them this year


Day Of Awareness

Blue Monday – typically the third Monday of the year – was coined by a psychologist back in 2004 – as the ‘most depressing day of the year’ where a combination of post-holiday blues, failed new year’s resolutions, mounting financial pressure, and cold weather, all snowball together.


Given this day always falls on a working day, there has been mounting pressure on companies to recognise the mental health of their employees – whether it is work-related or not.


Chris Poole, Managing Director of Robert Walters UK comments: “We are seeing that the onus has shifted in recent years, ‘it’s no longer what can I do for a company?’ – professionals are beginning to ask ‘how can my company help me?’”


“The rise in awareness in terms of employee wellbeing has not only caused employees to become more outspoken in terms of their own expectations in the workplace – but also shifted the spotlight onto employers, increasing expectations around what the leaders of companies should be doing to help their employees."

Whilst budgets may be tight, 2024 is evidently not the year to turn a blind eye to money being spent on employee wellbeing.”


Efforts Go Unnoticed?

According to research from WTW, over a third of companies (36%) at the beginning of the year were planning to double their current spend on employee wellbeing initiatives, despite a turbulent economy and concerns around inflation.


In spite of this only 11% of professionals feel that workplace wellbeing has become a priority for their employers – according to a recent Robert Walters poll.


In fact, an overwhelming two-fifths (41%) of employers stated that their employees barely noticed the new interventions they’ve introduced to boost employee wellness.


Companies ‘Wellbeing Washing’

Pressure mounts as companies are increasingly being accused of ‘wellbeing washing’ – the act of outwardly showcasing support for wellbeing awareness and mental health causes (such as via social media posts or celebrating awareness days) whilst not actively working to improve the wellbeing of their own workforce all year-round.


In fact, Claro Wellbeing found that despite 7 in 10 workplaces ‘celebrating’ mental health awareness days – less than half of these companies actually offer adequate mental health support.


Employees Demanding Change

A resounding 70% of professionals stated they now expect more (e.g. benefits, working culture, empathetic leadership & ESG contributions) from their employers compared to 18 months ago – with less than a fifth stating otherwise.


Interestingly, when asked, over half (58%) of managers thought their employees had become more outspoken in the workplace over the last three years.


Findings from the poll also revealed that almost two-fifths (39%) of managers feel that employees are becoming more vocal when it comes to getting their needs met – with a further quarter (26%) claiming that employees are actually taking matters into their own hands.


When asked how employees were ‘taking matters into their own hands’ in order to manage their own wellbeing in relation to work, some of the most popular methods were:

  • picking the days they are in-office (56%)

  • setting their own work hours (24%)

  • pushing back on workload (10%).


Chris comments: “For professionals in an increasingly hybrid world, having autonomy in deciding the days they are in the office & setting their own work hours can help them avoid burnout – which right now, is enemy number one in terms of productivity and satisfaction levels."


“Whilst we are definitely seeing more of a push to return to the office, caution must be taken as to whether this is a positive or negative move for employees mental health and work-life balance.”

When asked, over a quarter of employees stated that wellbeing had become a priority for them over the past year – however, almost two-fifths noted not believing it had become one for their employers.


Chris comments: “Upscaling wellbeing interventions can be as easy and inexpensive as flexible work arrangements, improving access to mental health resources, setting up mental health employee resource groups (ERGs), offering paid sabbaticals, or even adding plants or introducing more natural light into the workplace.”


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