The majority of SME bosses would end up working past state retirement age, according to Aldermore’s latest Future Attitudes survey, with 63% intending to work beyond the age of 55.
15% of respondents saying they would sell their business or property to finance their retirement.
Just under half of SME leaders interviewed said they would rely on a personal or state plan pension, with around 20% instead dipping into personal savings or investments.
Though two thirds of respondents said they would like to retire by 65, little over a third believed they would be able to afford to. 35% said they would work well into their seventies, and one in ten expected to never be able to retire.
Though almost half of respondents said they would work past retirement age simply because they enjoyed their work, over a third said they would not be able to afford a comfortable lifestyle without working.
Carl D’Ammassa, group managing director for business finance at Aldermore, said: “Planning for retirement is at the top of everyone’s agenda once they reach a certain age, and it is a time that can be fraught with difficulties and concerns. It is understandable that in this current economic climate and with the UK’s ageing population, more SME leaders are working long after the state retirement age in order to make ends meet, with over one in ten also required to provide financial support to family members.
“Running your own business can mean long hours and SME owners deserve a relaxing and enjoyable retirement but it is in their own hands to ensure this happens by planning as far in advance as possible.
“Despite a significant number of business owners having to work throughout their later years, it is encouraging to see that so many of them are still relishing the opportunity to be their own boss and lead the way well after they are 65. SMEs are the backbone of the British economy and they need strong experience and leadership at the helm. However, for those small business leaders who are passing on the running of their business to others, we urge them to do this as auspiciously as possible to ensure the firm continues to thrive in the future.”