Helpful Information for Businesses

MA student Isis Myklebust is currently studying at Leeds Metropolitan University for a master degree in International Business. As part of the course, she is undertaking a research project which investigates motivation and personal attributes of female entrepreneurs, under the supervision of Dr. George Lodorfos.

The aim of the project is to investigate into female entrepreneurs, their motivation for business start up and what personal attributes they are holding.

She would like to be put in touch with any female entrepreneurs, who may be prepared to contribute to her study by answering a few interview questions. The interview will not last for more than 30 minutes and the interviewees will have the opportunity to see, revise and/or approve the transcribed interviews.  She is not looking for sensitive and/or confidential information and strict anonymity and confidentiality will be kept.  Contact her on: 07783 437299, E-mail: isismyklebust@hotmail.com

Self-Employed?  Who will provide your pension? We are all living longer, and a man retiring at 65 must provide a retirement income sufficient for the 22 years on average that he will live. A woman must provide for 24 years as they live for two years longer.

With that in mind, here are some useful Pension Tips to help you prepare.   

Start pension contributions sooner rather than later. If a 45 year old delays starting a regular savings plan (Personal Pension) for five years they would need to contribute 50% more each year to obtain the same pension.  

Make affordable regular monthly contributions that increase automatically each year. You can always top –up your benefits with larger single premiums as circumstances allow. 

Ask your Independent Financial Advisor (IFA) to review your pension arrangements yearly, to check if they are on track to meet your requirements.

To benefit from the excellent growth in property you can invest in the property fund of your chosen pension provider. When property shows signs of a slowdown you can switch to safer funds and not lose out. 

To ensure that you retire on a pension of roughly two-thirds of your salary, the percentage of your salary that you pay in contributions, should be equal to half your age when you start contributing.   

Only one person can ensure that you retire with sufficient income-YOU.

PRIME also points out the disadvantages of some alternative methods of providing for retirement.

If you do not save and work on past age 65 you will eventually have to stop work be reliant on low state benefits. The minimum income that the state says you need as a single 65 year old is £119.05 pw.

If you rely on selling your business you will only get what someone is willing to pay for it in what could be a depressed market.  £100,000 will only provide a pension of £5,452 * pa for a male aged 65.

If you invest in property the next property slump will probably start just before you plan to retire. Could you defer your retirement if it does?

You could invest in ISAs but you risk being be tempted to encash them early to cater for family emergencies thus reducing your expected retirement fund.     

Finally, you should seek advice from an IFA who will explain the advantages of joining the 39% of the self-employed who currently make adequate provision for their retirement.  Those 39% have taken advantage of the tax-relief available on contributions to Personal Pensions to the extent that £1,000 invested by a standard rate taxpayer means that £1,280 is credited to their Personal Pension from day one. Higher rate tax payers claim the extra relief via their tax return.  

prime@ace.org.uk.

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