Recent research from the Pensions and Lifetime Savings Association suggests that to enjoy a comfortable retirement living standard, the annual pension income needed by one person this year is £33,600 and is £49,700 for a couple.

Many business owners think that the sale of their business will be their ultimate pension fund.

However, it may not be as easy as you think to tuck into this nest egg because:

  • It simply isn’t worth as much as you thought.
  • You face difficulties selling the company when you retire
  • You decide to pass the business on to the next generation

That is why business owners need to plan for retirement at an early age – from as young as 40 – by developing a Life Wealth Plan that determines the value of your business, and the need for sale or succession in the longer term, to inform your investment and retirement strategy

How to develop your Life Wealth Plan

Building a Life Wealth Plan requires you to consider the different options available to you to create a diverse and active portfolio that ensures you are financially secure, with a balance of wealth within the business and held personally outside the business. This could include: 

  • A clear wealth strategy
  • Family review
  • Business valuation, exit or succession strategy
  • Protection and life cover
  • Review of business and personal borrowing
  • Pension planning
  • Tax efficient income, growth and extraction of profits from the business
  • ISA and Investment strategy
  • Estate, will planning and Inheritance Tax mitigation
  • Development of an action plan including business sale or succession plan

Why is a Life Wealth Plan so essential?

Most young people don’t think about their retirement. With many struggling to even get on to the property ladder, the last thing they often consider is life after work, and yet putting a plan in place early on in life can pay dividends.

It is never too early to start thinking about retirement and planning for the day when you can leave work.

As the date of the state pension age keeps increasing, people need to think seriously about what they want to be doing in their 60s and 70s so that they can take the actions they need to achieve their financial goals.

Why update a Life Wealth Plan?

Those with existing Life Wealth Plans will have already experienced the many benefits they provide and the peace of mind that they offer.

However, many aspects of our lives can change over time, from the purchasing of new businesses to the welcoming of children and grandchildren to a family.

To ensure that a Life Wealth Plan remains relevant and meets your aspirations, you must ensure it remains up to date, especially if you experience a big event in your life.

How we can help

Lamont Pridmore has helped many business owners and individuals prepare Life Wealth Plans using its expertise in investments and tax planning, with support from its team of award-winning specialists at Lamont Pridmore Asset & Wealth Management

Developing a Life Wealth Plan will help you meet your financial, business and personal goals and could ensure you are financially secure in retirement. 

Creating a Life Wealth Plan could be the best next decision you will ever make, so please contact us.