Bosses planning to retire on business
20 March 2003
Small business owners are planning to use their business as a pension, according to new research by Abbey National business.
Almost a third (31 per cent) of bosses plan to sell their companies when they retire, rather than pass them on to family members.
Of those surveyed a tiny 15 per cent planned to keep the business in the family, while six per cent said they would probably sell it to staff.
Gary Hockey-Morley, director of Abbey National business commented, 'It's a far cry from the days when everyone in the family used to work in the traditional small business and it was simply passed down from generation to generation.'
'Today's small business bosses want to enjoy their retirement and with pensions falling short, they are looking to their business to fill the gap.'
The average boss now plans to remain in control until they are 62 (30 per cent) and only two per cent saw themselves retiring between the ages of 50 and 54.
Retirement plans included spending time with the family (46 per cent), moving somewhere hot (42 per cent) and just under a quarter wanted to continue working as consultants.
The Abbey National business study blames more expensive lifestyles and longer life expectancy for the change in small business owners plans.