Small business owners risking pensions
The Forum of Private Business has warned that increasing numbers of small business owners are cashing in their pensions to fund their businesses, leaving them facing an impoverished retirement. Pension-led funding provider Clifton Asset Management estimates that during the first year of the pension freedoms, business owners cashed in around £400m to fund new business ventures. It forecasts that £2bn will be taken out of pension pots by entrepreneurs by 2020. FPB managing director Ian Cass said: "Many small business owners feel indestructible but then the downsides of using your pension pot and the risks just haven"t been well-publicised."
Source: The Daily Telegraph