How SME owners can fund their pension
18th September 2019.
Workplace pensions warning
Workers auto-enrolled into a workplace pension in the UK could fall short in retirement unless they top up monthly contributions, according to new research from Aegon.
A 22-year-old on £27,000 a year and paying in the legal minimum risks falling £3,283 a year short of the £18,090 they would need to enjoy a comfortable life in retirement, according to the research from the life insurance giant.
The analysis suggests that a 22-year-old on average earnings would need to contribute an additional 4% above the 8% minimum combined contribution to retain their lifestyle in retirement or risk falling £106,500 short of the necessary savings.
Steven Cameron, pensions director at Aegon said: “Someone earning £27,000 should be aiming for an annual income in retirement of around £18,000 in today’s money to maintain their lifestyle. While the state pension will on current terms provide around £8,767 of this, and being automatically enrolled will also produce a valuable fund, they still face a major shortfall and the longer people wait to address this, the harder it is to catch up.”
25% of SME owners have no retirement cash plans
Meanwhile, analysis by cloud accounting provider FreeAgent has found that a quarter of small business owners have no arrangements to fund their retirement.
The poll, carried out in partnership with the Freelancer and Contractor Services Association, shows that 25% of the 490 people surveyed have no current plans or arrangements to fund their retirement. Forty-nine per cent make contributions towards the State pension and 25% contribute into a non-employer private or personal pension plan, according to the survey.
It was found that a number still have pension funds from their previous careers, with 28% having a legacy employer pension that they no longer pay into, while 10% have an employer pension plan that they still contribute towards.
Some 4% of respondents said they plan to sell their business in order to support their retirement, while 21% have other investments, such as property or ISAs. On the possibility of pension auto-enrolment for the self-employed, 45% said they would opt in, while 24% would opt out, with the remainder unsure.
Do you realise you could be sitting on your pension pot and not know it?
If you are an SME owner who sold B2B on credit then there may be a hidden source of funds waiting for you to realise that could fund your pension?
Many small business owners start to think of selling up to fund their pension but rather than go through that lengthy and costly process, there could be away to realise even more from a hidden asset within your business.
Late Payment Compensation!
Every invoice to another business that was paid late in the last six years will be worth at least £40 in compensation as well as interest.
We can help you uncover the pile of gold, you didn’t even know you were sitting on.
We are talking to business owners who have claims of hundreds of thousands of pounds, sometimes millions.
And that is just from ex-customers they are no longer trading with.
Let’s be clear – this is not a way to weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.
By only focusing on ex-customers you can still sell that business with the existing customers.
You can pick and choose who you want us to follow up. Some business owners who are shutting down their business for one reason or another have decided to go for all the compensation they are due.
You had the pain! Now have the gain!
Once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.
That compensation could provide the cash boost your pension pot needed.
But don’t delay, that compensation evaporates if not claimed within six years of the late payment.
How can CPA help?
CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.
We recognise that most companies do not have the resources to spend time on the identification and calculation of Late Payment Compensation. Our service can produce an Analyses within just a few days with (usually) less than 30 mins of co-operation from our clients. We work directly with over 300 accounting packages but can also work with bespoke accounts packages. Indeed, speed is essential as the oldest invoices may fall foul of the 6-year time limit.
Once the Sales Ledger Analyses is made available to clients, all that is required is that management decide which commercially sensitive ex-customers to remove from the list and return it to us.
CPA then uses its years of collection experience to explain and recover the Late Payment Compensation Claims. Clients do not handle any part of the recovery process as our team will take all communications from the companies against who the claims has been made. Often, it’s simply a case of explaining the legislation, sometimes we have to go all the way and enforce the legislation through the courts.
The result is that we are realising clients’ claims worth tens and sometimes hundreds of thousands of pounds which, of course, is pure net profit. You may also be among the recipients of “hundreds of thousands of pounds” should you elect to take advantage of our services.
We do the work, you receive the cash.
If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.
We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.
We are helping business owners who are looking to boost the returns from their business before they retire. We are helping businesses who have lost major clients after years of loyal service to get properly compensated for systematic late payment. We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.
Those former clients who regularly paid you late can finally be made to pay.
CPA is passionate about late payment
The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.
We are extremely passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.
If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.
As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.
Under little used legislation, you are entitled to compensation for those late payments.
Now you can boost your own cash-flow.
CPA can help unearth the those hidden treasures.
We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.
Yes, CPA can help you boost your business cash-flow.
Don’t let your bankers control you, contact CPA today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Do you sell on credit?
With pressures on the cash flow it is essential that you stay on top of the credit limits you grant customers and watch carefully for any late payments.
Those customers will look for the easiest option to boost their cash-flow. Don’t let it be you.
You can’t just assume your customers can and will pay you eventually, no matter how big their name is.
It is essential to have credit management systems in place to monitor and check your customers credit worthiness.
It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.
About CPA
The Credit Protection Association can help!
Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.
At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.
We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.
Companies in trouble usually have very bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.
If you supply on credit, help us help you identify the risks.
Why use a third party collector?
As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When you customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.
Over the years we have collected billions in overdue invoices for our customers.
Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263