Three In 10 Business Owners Have No Pension

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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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Oct 14, 2025
3 min read

Bradford Bulls are delighted to announce they have beaten off competition from a leading Super League club to secure the signing of Andy Ackers on a two-year deal from Leeds Rhinos.

The 31-year-old made his professional debut for Swinton in 2014 before spells at London Broncos and Toronto Wolfpack. His impressive performances for the Canadian outfit earned him a move to Salford Red Devils, where he earned the reputation of one of Super League’s top nines.

Ackers earned his first England call up for the 2022 Rugby League World Cup where he featured twice, scoring in the 94-4 victory over Greece. Ahead of the 2024 campaign, the Wigan Academy product made the switch to AMT Headingley Stadium in a high-profile move and has now made over 100 appearances in the sport’s top-flight.

Andy Ackers said:

“I am really excited, when my agent told me my time at Leeds was coming to an end and with Kurt getting the job at Bradford, it was a no brainer really. I worked with him at Toronto and Salford, he knows me as a bloke and vice versa. I trust him and he trusts me, Bradford is a massive club with a rich history and I cannot wait to get going again and get my love back for playing.”

“Kurt knows me as a person and as a player and that’s massive in Rugby League, we go back nearly 10 years when he started coaching me at Toronto, he knows what makes me tick and he’s a very smart coach and I am excited to work under him again. I believe he’ll get the best out of me and the team.”

“I still haven’t played my best rugby yet, the last couple of years have been a bit hit and miss but knowing Kurt and the relationship I have with him I really do think he’ll get the best out of me. I won’t just be relying on Kurt but also my mentality to come in and lead the squad, I just have a good feeling about this move."

“It’s a very exciting move for myself and my family. Kurt was a big influence but knowing everything the club have got planned behind the scenes and the team they are recruiting, it sounds the right fit for me. Bradford have re-established themselves now, it is a fresh challenge for me and something I am proud to be a part of."

“I’m a bit of an older head now, I am 31 with a lot of experience playing in Super League and for my country so that’s the kind of player and person I’ll be coming in to be. I know there’ll be young lads stepping up into a full-time environment so if I can add my part and my experience it will be good for the club and myself."

“I’ll be really proud to run out as a Bradford player for the first time with my wife and three kids being able to witness their husband and dad walking out on the pitch. My family have grown up having seen Bradford be the biggest team in Super League for many years. The fans have always been amazing, they had one of the biggest followings in Super League now it is about getting them back behind the club with the big plans they have behind the scenes.”

Bradford Bulls Head Coach Kurt Haggerty has hailed the recruitment of Ackers as a “statement signing”.

“I am delighted to get the signing of Andy over the line. This is a statement signing for the club,” said Haggerty. He is a fantastic person and plays his best rugby when he is happy and is constantly being pushed to maximise his full potential."

“Andy was playing international rugby for England at the last World Cup, which shows the pedigree of player we have managed to acquire here at the Bulls.”

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