29 May 2015 | Online since 2003



5 July 2012|Finance,News

More farmers working beyond retirement age


Around 1.4 million people are working beyond the retirement age, more than double the number recorded in 1993. Older people made up 12% of the workforce last year, compared to 7.6% in 1993 according to a recent survey by the Office for National Statistics.

Two of the most common jobs for older men were farming and taxi driving.

“Often farmers continue to draw profits out of the farm throughout their retirement, with many feeling they have to keep working in the business to justify their share of drawings. But many family farms simply can’t fund an extra partner, and splitting the profits too many ways eventually runs the business down through lack of investment" said Julia Banwell, a financial planner at Old Mill.


Some farmers bank on renting out the land when they get too elderly to farm it, or selling up to realise enough capital to live on, says Banwell. But both have inheritance tax implications.

Parents who want to hand over the farm to the next generation should consider paying into a separate pension or investment vehicle, to support them in retirement while freeing up the core farming business.


“Paying regular amounts – or lump sums in a profitable year – into a private pension is great way to reduce income tax bills and build up a decent pension pot. Once you have a sufficient amount saved you could convert it into a Self-Invested Personal Pension, which you can use to buy land and property, or to set up a diversified enterprise.

“That can provide a regular income throughout your retirement, and you are still left with a capital asset to pass onto the next generation,” she adds.

“If you make a succession plan in your 30s rather than your 60s, you can pass on the farming business intact, while also providing for yourself and any non-farming descendents. It opens up a lot more options for the family as a whole.”

Download




Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


23 May 2015
Job for Herdsman / Farm Worker for 250 cow family dairy farm.  Staffordshire
Herdsman / farm worker job on a dairy farm . Help urgently needed for 250 cows, milked through h-b 20 s/o >...

15 May 2015
Job for Forward thinking and motivated drivers wanted to join our modern well established contracting team.
We run a fleet of modern tractors and machinery undertaking all aspects of Grass Silaging and Muck and Slurry Management alon...

1 June 2015
Stockman with land management skills: Interesting livestock job on farm in East Suffolk
We are looking for a self motivated, experienced person to take over the running of our Suffolk Red Poll herd and continue th...

13 July 2015
Two Experienced Summer Harvest Workers required for a job in Kent
The Estate is a progressive farming business based in Kent, made up of around 2,400 acres of arable across four sites with co...

6 July 2015
2 tractor drivers required for corn carting and potato work.  Driving brand new Case Puma 180s.
CountryUKAreaEast & East AngliaPostcodeCB6Job LengthHarvest / SeasonalDatesStart: 06/07/2015, Finish: Not SpecifiedDriving Li...



Top stories you may have missed
15 May 2015 | Arable

Scotland’s Rural Affairs Secretary Richard Lochhead is calling on the Europ...


15 May 2015 | Finance

As the country settles down following the turmoil of the general election, ...


14 May 2015 | Animal Health

New research from the Universities of Bristol and Cambridge has found that ...


13 May 2015 | Animal Health

A new publication to help farmers prevent sheep lameness and offer advice o...


12 May 2015 | Agri Safety

The Farmers’ Union of Wales is putting the spotlight on Liver fluke at next...


5 May 2015 | News

The UK is now third in the global rankings for utility-scale solar energy a...


29 April 2015 | Agri Safety

A recent Rural Watch demonstration and information event gave Farmers’ Unio...


24 April 2015 | Meat Processing

Retailers should confirm their commitments to sourcing UK lamb this season,...


15 April 2015 | Meat Processing

A leading retailer has apologised after selling imported lamb in a Borders ...


9 April 2015 | Finance

The time has come for landlords to expect to see reductions in farm rents, ...