How to increase your retirement savings if you own a business
However, if you're approaching retirement, then your options may be more limited. This may particularly ring true with business owners, when the amount you earn and are thus able to save, depends upon how effectively you're able to manage your company's expenditure.
In fact, the Office for National Statistics released figures in 2016 highlighted that while the number of self-employed individuals in the UK continues to grow, approximately two thirds are not contributing towards a pension.
If you own a business and are considering methods of saving for a pension fund, or perhaps starting to think about giving up work and want to increase your retirement savings, there are a few approaches you can implement to reduce business overheads.
Cloud services are becoming increasingly popular with businesses of all sizes and they provide a number of benefits. Cloud doesn't require the installation of expensive servers or software purchases. Many online storage options include an affordable subscription service, use of the latest software and can also be accessed from any location, which could boost the productivity of your employees.
Paying for company phone lines can be costly, particularly if calls are long-distance or overseas. Instead, encourage your staff to use free internet services, such as video calls, social media and emails. This can also help to reduce the cost of meeting clients, through the use of virtual and teleconferencing technology, saving on catering and travel expenses.
In addition to office rental, utilities can cost a business a small fortune. From lighting and heating, to computers and printers, energy bills are continuing to increase as more businesses operate using technology. A simple solution is to become more environmentally conscious. Install energy efficient lighting, encourage employees to turn off computers when they're not in use, and reduce the amount of paperwork by using digital solutions.
If your business sells products and goods to customers, you'll know only too well how costly logistics can be. The expense of logistics can be reduced in a number of ways, including: utilising a transport specialist like TNT UK Ltd to provide savings on shipping and freight costs, increasing storage in your warehouse to more effectively make use of inventory space, and revisiting packaging to save wasted space.
There are many ways business can save money, whether small enterprises or large corporations. As a business owner, consider the ways you can reduce expenditure and boost your pension pot.