30 January 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


15 January 2015
Sales Account Manager
Pharmaceuticals, Cosmetics, Beverages, Food, Confectionery, Frozen Food, Dairy and Technical Articles. Sales Account Manager ...

16 January 2015
2676 - customer relations team leader-open to pcc emps only
Based at the Wecock Farm Area Housing Office you will supervise a team of Customer Relations Officers and provide customer or...

15 January 2015
Bulker Driver LGV 2
Farm delivery experience an advantage. We require a bulker driver for farm deliveries all over the South West and South Wales...

16 January 2015
Dairy Operative (nights)
They constantly strive to achieve and are currently looking for a Dairy Operative to work on a night shift. Do you have atten...

15 January 2015
Operations Assistant
Pudology is a new and exciting food brand, we produce dairy and gluten free desserts for the retail sector. Our customers inc...




Top stories you may have missed
12 November 2014 | Arable
GM crops 'good for farmers and the envir...

GM crops 'good for farmers and the envir...

GM crops are good for the economy and can reduce the amount of pesticides u...


6 November 2014 | Cattle
Smaller European markets drive beef expo...

Smaller European markets drive beef expo...

Demand from smaller European markets has helped drive strong growth for UK ...


6 November 2014 | Agri Safety
Lack of engineers a 'ticking time bomb' ...

Lack of engineers a 'ticking time bomb' ...

A lack of engineers, not enough people promoting the land-based industries ...


4 November 2014 | Bees and Beekeeping
Bee action plan due: Last chance for bee...

Bee action plan due: Last chance for bee...

Environment Secretary Elizabeth Truss is launching the National Pollinator ...


4 November 2014 | Arable
Experts welcome financial boost for youn...

Experts welcome financial boost for youn...

Agricultural specialists have welcomed a potential financial boost for youn...


3 November 2014 | News
Supermarket competition on prices 'risks...

Supermarket competition on prices 'risks...

As retailers continue to participate in a highly competitive race to the bo...


31 October 2014 | Arable
New Defra farm figures 'underline volati...

New Defra farm figures 'underline volati...

New farm business income data from Defra, which focus on income from March ...


30 October 2014 | Agri Safety
Agriculture remains one of UK's most dan...

Agriculture remains one of UK's most dan...

Agriculture has remained one of the industries in which workers are most li...


29 October 2014 | Finance
UK farmland prices see 'substantial grow...

UK farmland prices see 'substantial grow...

Prime arable land in the UK has seen a substantial year-on-year growth in p...


27 October 2014 | Arable
Satellites to help farmers pinpoint dise...

Satellites to help farmers pinpoint dise...

A new mobile app for farmers able to pinpoint and identify disease, pests a...