What’s your vision for retirement?
Gain peace of mind with retirement planning
Retirement is often viewed as a faraway event. So far away that many people ignore retirement planning throughout the first part of their life – and then realisation kicks in about how to continue living their current lifestyle without a guaranteed income.
As a business owner, retirement planning applies to yourself as a director and to your employees.
Have you thought about what will happen when you choose to retire?
- Do you have a management team in place to hand over the business reins to?
- Have you considered selling the company to a competitor, an investor or as an acquisition?
These are important questions and planning an exit strategy from the business will allow you plan effectively and enjoy your retirement.
The earlier you plan your exit strategy the better because it will allow sufficient time to build your legacy and ensure the company is valued for its true worth and your hard work over the years.
Effective planning will allow you to reduce tax payments, accumulate sufficient funds to live off, prepare for healthcare costs and tick off exciting bucket list items.
How will your employees take your retirement decision?
Many employees are loyal to a company, especially if it’s a family-run business and the owner takes an active part in the day-to-day operation. Breaking the news of retirement may come as a shock to employees and they might even fear that their job is at stake as a consequence. Thinking about this in advance and putting measures in place will ensure their peace of mind that their role is safe.
Honesty is always the best policy. Once your retirement exit strategy is in place it makes sense to share it with the company so that everyone can work as a team to make your vision happen. There may even be key employees that need to be involved as part of the consulting and planning stages.
We trust Becky’s advice and value how proactive she is in looking after the business interests.
How do you manage employee retirement?
Whether an employee is soon to retire at the general age of 68 years, asks for early retirement or has just started working for the company, there are obligations as an employer to support their retirement planning.
Being perceived by your employees as a caring employer and offering to help them to make the right decisions during their working life and into their retirement encourages loyalty.
Auto enrolling employees into a workplace pension scheme and organising financial advice to explain the benefits will be valued in their eyes.
Profit-sharing plans, employee stock ownership and stock bonus plans are other ways a company can contribute towards employee retirement.
Talk to Willow Financial Solutions about planning your retirement, exit strategy and opportunities for employees.
