Owning a business can have its perks: building it around your personal interests and passions, choosing your own hours, and determining your work environment – to name a few examples.
That said, owning a business also comes with a lot more responsibilities. In addition to the task of running a company, you are in charge of organising your own pension scheme. Unlike employees who are usually auto-enrolled into their workplace pension, business owners must take the initiative to arrange their own finances for life and post-work.
And if you’re not too sure where to start, don’t worry! We’ve got some tips to get you started…
Start early
We understand that life happens, making it easy to put off things like long term financial planning. However, kickstarting retirement planning early might mean you’re better off in the long term – and it could even mean bringing forward your retirement date.
To kickstart the process, start thinking about what kind of lifestyle you’d like to live; are you one for a getaway abroad, or would you rather spend it with the grandkids? Considering this can help you start to understand what income you would need to support you and set a goal. Not only that but the sooner you settle on an income goal, the sooner you can start saving for it! Even small contributions made consistently over time can accumulate into a significant retirement fund, reducing the pressure to save large sums later in life.
Don’t forget about yourself
It’s important to prioritise your well-being – both now and in the future. While reinvesting in your business is essential, don’t forget that saving for retirement is a powerful way to take care of your future self..
It might take some discipline – understandably, many business owners are keen to reinvest as much as possible into their business. However, committing to dedicating some of your income directly into your pension could really add up in the long term. After all, you’ve worked hard, and you deserve financial security and peace of mind later down the road.
Seek advice in uncertainty
Seeking financial advice could be the most beneficial option. An expert can help you plan an exit strategy, ensuring that when the time comes to step away from your business, you have a clear financial roadmap.
A financial adviser will really get to know you, and the vision you have for retirement. They will gain an understanding of your current circumstances and create a strategy tailored to these. Getting advice not only tailored to your situation, but your goals, can give you peace of mind knowing that the decisions being made are in your best interests.
Life has a way of throwing unexpected challenges our way. Especially when dealing with the trials of running a business, it can be easy to put financial planning on the back burner.
No matter where you are on your journey, the right support can help you get back on track and move toward a secure, confident retirement. As a small business owner, taking control of your financial future now will ensure that all your hard work pays off – not just today but for years to come. To get started on putting your financial future in the best position, contact us today.
