Retirement 'a distant dream'

By HELEN LOVELESS, MAIL ON SUNDAY ENTERPRISE EDITOR
Updated:

 

Sixty per cent of small business owners are delaying retirement because of the worsening economic conditions, according to exclusive research carried out for Financial Mail.

Mark Ayres

Downcast: Estate agent Mark Ayres

A third of those considering selling their business said the downturn was severely affecting their search for an interested buyer, with more than 20% believing the selling price had fallen, leaving them little choice but to work for longer.

'Many business owners feel further away from realising the dream of retirement than they were last year,' says Neil Greenaway, managing director of Bristol-based financial adviser Clifton Asset Management, which conducted the survey. Even in retirement, small business-owners expect to find life harder financially.

More than 80% said the value of their pension fund had fallen during Gordon Brown's time as chancellor and more than a third said they would probably set up another firm to help cope.

Those worst affected include construction workers, builders, carpenters, plumbers, estate agents, architects and engineers.

About 80% of those questioned felt the Government failed to recognise the importance of owner-managed businesses and blamed it for economic mismanagement.

Mark Ayres runs an estate agency in Buckingham. In the past three months he has seen sales and lettings volumes fall by 75% and has had to make three employees - a quarter of his workforce - redundant.

Mark, 35, is not optimistic and says: 'There have been a number of estate agent closures nearby and we expect the next 18 months to be tough for small businesses in particular. We would not be surprised if house prices fell by 20%.'

Greenaway says: 'Small business owners feel abandoned by the banks and the Government.'

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