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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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A new survey, carried out by the agricultural wellbeing charity, Farmstrong Scotland, has found that farmer and crofter wellbeing is lower than the Scottish population.


More than one-third of respondents fell into the low wellbeing category, when compared to the most recent Scottish Health Survey (2023).


Furthermore, the 569 respondents demonstrated that, broadly, their wellbeing increased with age, with young respondents reporting the lower scores.


The sample, which was carried out by an independent research agency and evenly split between men and women, received representation from every region in Scotland, and provided a similar profile to the 2024 Agricultural Census. To give a more typical reflection of the agricultural sector, the results were weighed against the data collected in the Census.


Whilst 26% felt that their ability to cope with the ups and downs of farming has got worse in the last year, 21% felt it had got better, with taking time to notice the small things, learning something new and helping other farmers and crofters all cited as positive impacts.


The amount and quality of sleep, and the balance between work and leisure, were identified as two areas that had significantly declined over the last twelve months, with respondents looking for advice on how to manage their tiredness, fatigue, sleep and stress.


Commenting on the importance of the survey, Farmstrong Programme Director, Alix Ritchie, said, “This survey is vital for the future development of Farmstrong Scotland. The findings, alongside the foundation research back in 2018, and future surveys will inform the development of the programme, and ensure that services are tailored to meet the needs of the Scottish agricultural and crofting community."


“We have already started this work, and just last month published a new resource that offers guidance for better sleep, a dedicated webinar and podcast, all supported by our wellbeing expert partners and the UK’s longest-standing sleep charity, Sleep Action.”


The impact of scientifically backed resources, and story-led content produced by Farmstrong was identified in the survey, with 62% of those who had engaged with the programme, reporting a positive impact on their health and wellbeing. One significant resource was the stress management guidance, which found 93% of those who had downloaded it cited a positive impact. Other noticeable elements were the farmer stories, Blether Together podcast series, and the walk and talk events.


“I would like to express my thanks, on behalf of the wider Farmstrong team, to all those who completed the survey, promoted it and shared it with their wider networks. These results are key for the future of the charity, ensuring we grow, develop and secure fundraising so we can continue to support farmer and crofter wellbeing in Scotland.”


To find out more or read the full summary report, click here.

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