In some professions, the idea of retirement can seem totally alien. Many actors work well into their golden years, while athletes often remain involved in their sports in some capacity after having hung up their gear from performing professionally themselves.

The same can be said for business owners. Having poured so much of yourself into creating and running your company, you might plan to continue working for as long as you possibly can. You might even plan to never retire at all.

If this is your goal, then there’s absolutely nothing wrong with it. It’s a perfectly valid choice to continue working into your golden years if that’s what you want to do.

However, if this does describe you, there are some key considerations you may want to factor in before you commit yourself to never retiring and decide you want to keep building your business for the rest of your life.

Read on to find out a few points of contention that you may want to think about if you currently plan to never retire from running your business.

Think about why you don’t want to ever retire

Often, when business owners say they don’t want to retire, there’s a reason for it. Explanations for this commonly include that they:

 

  • Are afraid to retire, unsure of what comes next
  • Think (rightly or wrongly) that they couldn’t afford to stop working
  • See work as integral to their personalities, and derive great satisfaction from running their business.

 

So, ask yourself: why don’t you want to retire? What’s your reason for that choice, and why are you making it?

The third and final one of those reasons above feels the most benign, as it means you are continuing to work simply because it’s what you love to do.

However, if you fall into the first or second of those categories, you may want to inspect these motivations a little closer.

For example, if you’re only continuing to run the business because you’re concerned that it will leave you untethered and not sure what to do with your time, rather than a burning passion for your craft, it might be worth thinking about what really does bring you joy.

In doing so, you could realise that you would be willing to step back from your company if you were moving on to another exciting or demanding project.

Similarly, you might think that you don’t have enough to live your lifestyle in retirement without the income from your business. But have you run the numbers? Do you know for certain that your wealth wouldn’t last if you stopped working? And, if you did actually have enough, would that change your view on whether you wanted to work forever?

There’s nothing wrong with wanting to keep working, but it’s crucial to inspect this fully and be sure that you’re making this choice for the right reasons.

It’s prudent to have a succession plan in place for your business

Knowing that you simply love running your company too much to ever formally retire is a great step in understanding your motivations.

But, even if you plan to work indefinitely, it’s still important to have a long-term succession plan for your business. That’s because you never know what might happen in the future.

Indeed, while you’re well and able to continue working, it might be no issue to work into your later years.

But what happens if you suddenly become unable to do so, perhaps suffering an injury or illness or even losing mental capacity? Do you have a plan for what would happen to your business? Have you chosen someone who could take the reins and continue operations in your absence?

If you’re not sure of the answers to those questions, it presents a problem for you and your business.

It could put the company and your employees in jeopardy while you’re unable to work, potentially being unable to operate as you usually would. You could lose clients and customers if the business is unable to effectively serve them, further harming the business’s bottom line.

Additionally, it could cause significant financial distress for you and your family if you’re unable to perform your function and derive the income that normally comes from your business.

As a result, it’s crucial to have a succession plan in place, even if you hope to never rely on it. Elements you may want to consider could include:

 

  • Who would take control of the company if you were permanently unable to work
  • How the business and the rest of the team will be structured in your absence, ensuring your customers continue to receive the same high-quality product or service in future
  • Having adequate cover to financially protect you and the business from the unexpected.

 

By thinking about these possibilities ahead of time, you can put yourself in the best position possible for your business to continue to thrive, no matter what happens to you in later life.

Working with a financial planner can help you work out the right route for you

As you can see, there are some important factors to think about before you decide you’re going to work indefinitely. And, that means there are many pitfalls along the way that could present a danger to you or the business.

This is where working with a financial planner can help. A planner can support you in working out what your ideal lifestyle would look like, and how much you would need to live it.

Whether this reveals that you want to remain in your business for the foreseeable, or you would like to organise an exit at some point, your planner can then also assist you with a comprehensive succession plan.

At Cordiner Wealth, we specialise in working with people just like you, helping business owners to make the most of their wealth.

If you’d like to speak to an experienced adviser today, please email hello@cordinerwealth.co.uk or call 0113 262 1242.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.