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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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  • Mar 12
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With artificial intelligence rapidly reshaping the modern workplace, many employees are caught between curiosity and concern.

 

New YouGov data reveals a nation divided: while 34% of adults say they use AI frequently, 37% admit they never use it at all.

 

And despite its growing presence, trust remains low - just 18% of people say they would trust AI to make decisions or take actions, while 72% wouldn’t feel comfortable allowing it to act on their behalf without approval.

 

But according to efficiency experts Kane Taylor and Jamie Burns from Ailsa, fears of AI replacing workers may be misplaced.

 

Instead of threatening jobs, they argue that AI has the potential to remove the mundane, time-consuming tasks that dominate many roles, freeing employees to focus on more meaningful, creative and complex work.

 

“I think it’s a big question on a lot of people’s minds at the moment, and a bit of fear, is this going to affect my job? Is this going to take my job?” said Kane. 

“But I think we can twist this in a positive way. If AI can do all the remedial tasks in the background, it means we can upskill our workforces to do more interesting, or more complex things, that we can focus our time on."

"Certainly, in my business, a lot of our time is going through a lot of admin and graphs, things that an AI could easily to, to allow us to focus on the more important things.”

 

“AI becomes a business enabler, rather than a risk and something to be scared of,” said Jamie.

 

“I think a lot of people are scared and worried about AI taking their job, but companies can use AI to streamline their processes and enable them to become a better business."

 

“One thing I would say, is that companies that incorporate AI into their businesses, and take away the more mundane tasks that people don't like doing, some of the admin functions that seem to take all day but need doing, that’s what you can use AI for and then use the people in the business to do the more complex and skilled stuff because you're always going to need people."

 

“We deal with data day in and day out, we deal with AI day in and day out, but it's never going to replace a person. Everything still needs a person, every interaction still needs someone there, because the whole personality and personal touch is what makes business operate."

“AI then will become a thing that will streamline and take away a lot of the tasks that people don't like doing on a day-to-day basis.” 

1. Learn to use AI so it works for you, not instead of you

“A lot of people are asking whether AI is going to take their job, and honestly, it’s a fair worry. But the truth is, AI is much better at taking the boring stuff out of your job than taking the job itself. If you get used to using it day to day, it becomes something that helps you, not something that replaces you,” said Kane Taylor, efficiency expert at Ailsa


“If the admin, the endless graphs, the time-draining background tasks can be handled by AI, that frees you up to do the more interesting, complex, valuable work. Getting comfortable with the tools puts you in the position of being the person who benefits from AI, not the one threatened by it.”

 

2. Lean into the human skills AI can’t touch

“No matter how good AI gets, it’s never going to replace people. You still need real conversations, real judgement, and real emotional understanding, the things that make workplaces actually function. AI can process information, but it can’t bring personality, empathy, or the instinct that comes from experience."


“So, focus on the parts of your job that rely on those uniquely human skills. The more you develop your communication, problem-solving, decision-making and creativity, the harder it is for any technology to step into your role.”

 

3. Build a reputation that people trust

“AI can help with tasks, but it can’t build relationships. It can’t walk into a room and earn someone’s confidence, and it can’t replace the trust people put in someone they know will show up and do great work. That personal touch is what keeps businesses running."

 

“When you build a solid reputation, being dependable, consistent, easy to work with, you’re creating something AI can’t replicate. People work with people they trust, and that’s your edge.”

 

4. Get good at deciding what the real problem is

“AI is brilliant at giving answers, but only if you tell it the right question. The real value comes from being the person who can step back, look at the situation, and decide what actually needs solving. That’s something humans are still far better at than any model."

 

“If you can identify the core issue, guide the direction, and then use AI to handle the grunt work, you become the one steering the process. AI supports the thinking, but it doesn’t do the thinking.”

 

5. Stay flexible and open to learning

“The workplaces that use AI well are the ones freeing people from the boring, repetitive tasks. That means there’s a huge opportunity for anyone willing to adapt. The more open you are to learning new tools and approaches, the more valuable you become." 

“Jobs aren’t disappearing, they’re shifting. If you stay curious and willing to update your skills, you’ll always have a role, and it’ll usually be a more interesting one than before.”



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