Cumbrian accountancy firm Lamont Pridmore is urging business owners and high earners to plan their transition into retired life.

There are currently 1.4 million people over the age of retirement that still work within some capacity – a number that continues to increase year to year. This is mainly due to an increase in part-time work of people over the retirement age.

Everyone has to prepare both financially and for their work life succession as retirement approaches, but perhaps because of the challenges of running a business, many business owners are taking a different approach to retirement.

Lamont Pridmore has pointed out that in the UK a growing number of business owners are postponing traditional retirement and instead are opting for phased retirement plans.

Often times business owners see their company as an extension of themselves, and the idea of stepping back completely can often be complex and undesirable.

Graham Lamont is the Chief Executive at Lamont Pridmore, he said:

“Many businesses owners aren’t just planning for retirement, they are planning for the upheaval of their life as they know it."

“Owners will spend years building emotional attachments to their business as it grows, the concept of just walking away from that on one day can be scary."

“However, we are urging business owners to not see retirement as a setback, but the start of the rest of your life"

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“This is where phased retirement comes into play, owners can choose to work part time over several years or months until they are confident that their business can thrive without them there.”

During phased retirement owners may start exploring options like partial sales, succession planning, consultancy roles or stepping into a chairperson position as a way to keep a foot in the door once they make their step into full retirement.

Graham said:

“Owners would rather gradually reduce their involvement in the company rather than just stop cold turkey. Phased retirement is emerging as a practical and appealing solution for owners to take a step back, it allows owners to maintain their sense of identity, support the businesses leadership transition and reduce sudden lifestyle adjustments associated with full retirement.

“We want to encourage business owners to focus on the conversation around legacy, rather than just the exit.”

A conversation with one of Lamont Pridmore’s experts can help you begin your retirement planning in earnest. Visit here for more information.