The majority of SME owners have not puts plans in place for their business for when they retire, says a new report.Research by Barclays found that nearly two thirds (61 per cent) of business owners had no plans for their business when the time comes for them to retire. This is despite the fact that for many SME owners, much of their financial capital will be tied up in their company.Sole traders were the least likely to have planned for their retirement, with 83 per cent having no plans in place, while SMEs with higher turnovers are much more likely to have made retirement plans. Of those who had made plans, only eight per cent said they were going to close their company. A third (30 per cent) planned that their next generation would be taking over the company and 28 per cent would like to sell the company to a new owner. Finally, 14 per cent said that they expected a management buy-out."Despite being driven within the business world, there is an alarming apathy amongst business owners with so many yet to consider the future of their company when they retire," commented Barclays’ commercial director Stephen Ingledew."So many business owners have the financial security of their retirement tied up in their livelihood and it is essential that they plan early so they can determine the best route to release this security or devise a plan that ensures a worry-free retirement."Recently, a survey by Fidelity found that nearly half the finance directors of the companies it questioned admitted that their company pension scheme would not adequately provide for their workers’ retirement. © Adfero Ltd

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