As a small business owner, it’s easy to get swept away in running your business, but what happens when it’s time to wind down? If retirement is playing on your mind, you might be wondering what the best way to step back from the day-to-day running of your business is.
Retiring from your small business
Selling your business
One option for small business owners to consider is selling the business and using the money to fund their retirement. You can sell your shares in the company to another buyer, or existing shareholders and relinquish your control over the company.
However, many small business owners aren’t prepared to quit cold turkey and can find themselves hesitant to let go of the reigns. In this case, you might consider selling a majority stake in the company but hanging on to some of the shares so you still get to be a part of it moving forward.
Handing the business down
For many small business owners, handing the business down to their children or relatives is the end goal. If you’re ready to retire, it’s time to turn this dream into a reality and slowly start handing over control.
This keeps the business and funds within the family and allows you to act as an advisor and mentor in the process.
If selling your business isn’t possible and you can’t hand it down, you can apply for a voluntary liquidation. This shuts down the business completely and involves selling all assets, paying off all employees, and dealing with any other debts.
Pension options for small business owners?
As a small business owner, there are various pension plans you can choose from. Our pension experts at The Bateman Group are here to help find the one that works best for you.
We offer pre-retirement planning advice and post-retirement advice so we can help you along each stage of your retirement journey.
Assessing your retirement options
As a small business owner, it’s important to start thinking about retirement as early as possible. Setting up and paying into the right pension scheme will give you enough time to build enough money to fund your dream retirement.
Our pension advisors can help you assess the pension schemes available to you and assist you in planning your long-term future. We can also provide post-retirement planning advice covering topics such as
- Lifetime Annuities
- Enhanced Lifetime Annuities
- Income Drawdown
- Phased Retirement