ABSTRACT
At some stage, the issue of the business cessation or sale needs to be addressed, and/or the provision for the succession of the next generation needs to be considered. The self-employed have historically been very bad in planning for retirement, often thinking that 'my business is my pension', thinking that they cannot afford to provide for a future that always seems an eternity away. Self-employed people generally need to keep their finances flexible to cater for any downturns in their earnings, so their savings should not be locked away in pensions. Once the annuity has been purchased by the pensioner, the contract is fixed for life, which means that the pensioner will not have to think about their pension arrangements again. It has the benefit that it secures an income for life. Tax relief is given on pension contributions at the rate of tax that the taxpayer is subject to.
