Small businesses are the new pensions for many bosses according to research by Abbey National.
Instead of passing the business down to the next generation, 31 per cent of today's SME owners are building up successful businesses to sell to the highest bidder upon retirement. Only 15 per cent want to keep it in the family and 6 per cent said they would sell it to their staff.
The research reveals the average SME boss intends to step down at 62. Only 2 per cent feel they will be in a position to retire between the ages of 50 and 54, but a further 3 per cent believe they will still be working past the age of 75.
Gary Hockey-Morley, Director, Abbey National business says: “It's a far cry from the days when everyone in the family used to work in the traditional small business and it was simply passed down from generation to generation. Today's small business bosses want to enjoy their retirement and with pensions falling short, they are looking to their business to fill the gap.”