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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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Expanding property consultancy Vail Williams has opened a new office in Oxford to meet growing business demand.


The office, forming an extension of the firm’s Thames Valley region, is headed by Richard Dawtrey, Partner and Head of Investment. Two new members of staff – experienced Partner Mike Watson and Surveyor Clark Tersol, have been recruited, both from Cluttons in Oxford.


Historic and listed building specialist Chris Bailey has been appointed to cover building consultancy and other hires are in the pipeline, including support staff. The Oxford team is being augmented by senior colleagues Guy Parkes (agency), Sarah Isherwood (planning), Dan Pearce (valuation) and Roland Browning (occupier advisory) all of whom are already active in the Oxfordshire marketplace.


Vail Williams will initially be located at New Barclay House in Botley and is offering a comprehensive, full-service proposition in Oxford. Managing Partner Matthew Samuel-Camps said:

“This further strategic growth is aligned with our Business Plan, enhancing our offer geographically and synergising perfectly with our current office footprint, particularly that of Birmingham, London and Reading."

“Richard, who had six years’ commercial property experience at a national firm based in Oxford before moving to Vail Williams, has kept in touch with his old client base and is clearly the perfect person to lead our city team."


“There is no denying that Oxford and Oxfordshire are significant growth areas and bringing in Mike was crucial to the process. He has worked in Oxford for 25 years, has a second-to-none reputation, knows the city’s property market inside out, is an expert on the city centre and, in particular, acts for a number of the colleges.”


Matthew added: “Oxford is a significant and world-renowned educational centre with a high growth wider region – including in Bicester, Abingdon, Banbury and Didcot where there has been substantial investment – and of course the significant business growth witnessed in the city itself allied to the university, especially in the life science markets."


“We already have a high quality, established client base in the region and will be seeking to build on our existing presence by offering a multi-disciplinary approach, as well as our expanding sector expertise in residential, energy and environmental and town centre re-purposing.”


Richard will also continue to act as Head of Investment, servicing clients in the south east and midlands regions and is also tasked with expanding the sector.


Vail Williams employs 175 people, of which more than 50 are partners, based across its 12 offices in the Midlands and south of England (Oxford, Birmingham, Crawley, Brighton, Woking, Heathrow, Leeds, London, Portsmouth, Reading, Southampton, Bournemouth).


Vail Williams’ full-service property advice includes commercial agency, investment and development advice, building consultancy, property valuation, planning, lease advisory, property asset management, business rates and occupier consultancy.


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