Using pension pots to setup businesses could help create older entrepreneurs claims the Institute of Directors (IoD).
Figures suggest that around 16 per cent of current business leaders are not planning to retire, either for financial reasons or because they wish to continue their working life. Therefore, the IoD believe it would make sense for such individuals to be able to access their pension pots.
The body has called on the government to consider the introduction of limited, tax-free withdrawals from pensions if the money is to be used for start-up investment, with a limit of £100,000. In addition, the IoD want the tax system to be more flexible to allow people to access training through their working lives without being penalised.
Lady Barbara Judge, chairman of the IoD, explained: “People in their sixties now are on the front line of the shifting boundaries between work and retirement. The Government should consider introducing tax incentives to encourage people to pursue their ideas and invest in training, so that they can continue to have fulfilling working lives beyond the age expected by previous generations.”