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Rathbones has called for a simpler, more predictable pensions framework that supports business owners and entrepreneurs without deterring investment, growth or long-term saving.
In its submission to the Government’s Pensions Commission, whose’ call for input closes today, Rathbones, one of the UK’s leading wealth and asset managers, warned of a self-employed retirement crisis among business owners and entrepreneurs, impacting the financial planning of thousands and threatening wider economic growth.
The firm said frequent policy changes have increased complexity, reduced confidence and risk discouraging long-term saving; it said savers need stability and continuity.
It also warned that business owners and the self-employed are particularly exposed, as many prioritise reinvestment in their businesses over pension saving. Its research found that three in 10 entrepreneurs lacked a pension, and nearly half had no ISA.
The submission says future reform should take a more holistic view of retirement adequacy, recognising that people increasingly plan across pensions, ISAs, investments, cash, property, business assets and inheritance.
Rathbones also urged policymakers to make decumulation – i.e. converting retirement savings into sustainable income – a central pillar of pensions policy, with stronger support to help people draw sustainable, tax-efficient retirement income without implying that one route is right for everyone. It warned that multiple generations face distinct challenges, with Generation X increasingly squeezed by needing to support both children and elderly parents, and Generation Z losing out as the state pension age rises.
Camilla Stowell, CEO, Wealth at Rathbones, said: “We’d like pensions policy to reflect better how people actually live, work and save. Our clients across the UK tell us their retirement planning is rarely just about a pension pot and generally brings together pensions, investments, property, business assets and wider family wealth – and such complexity needs appropriate support.
“A simpler, more predictable system would give people greater confidence to plan for the long term, while better support at retirement would help them make informed decisions when it matters most. This is particularly crucial for the self-employed who, despite driving wealth creation, often are often a forgotten cohort when it comes to retirement frameworks.”
Rathbones said it looks forward to engaging further with the Commission as it develops its final recommendations. The Commission is expected to report with recommendations in 2027.
