As a business owner, how do I prepare for retirement?
Very few business owners actually retire at the age of 64 or 65. Nevertheless, this normal retirement age is still important as all social insurance schemes are based around this age. There are a wide variety of deadlines and restrictions linked to this age threshold and it is also important when it comes to tax.
This means, for example, that it may be worth receiving a higher salary and fewer dividends. In combination with an optimised pension fund solution, this also creates additional scope to significantly lower their tax burden, with the potential contribution amount often increasing by several hundred thousand francs. By contributing to their pension fund, business owners are able to separate their private assets from their business assets with a view to optimising tax if they go on to sell the company.
Having a solid financial plan is also key to properly preparing for retirement. It should show from what age retirement is financially viable and how much money the sale must bring in for the business owner to be able to maintain their same standard of living in retirement.