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Why building retirement income has never been more important for farmers
Amy Woolliscroft4th August 2026
For generations, farming families have taken pride in passing their land and business from one generation to the next. Succession has always been a key part of farming life, but recent changes to Agricultural Property Relief (APR) and inheritance tax rules mean retirement planning is becoming just as important as succession planning.
Many farmers have traditionally viewed the farm itself as their retirement fund. Rather than building substantial pensions or investments outside the business, wealth has often remained tied up in land, buildings, machinery and livestock.
However, if the goal is to pass the farm intact to the next generation, relying on the business to provide retirement income may become increasingly difficult.
A successful succession plan often involves handing over responsibility and income generation to sons, daughters or other family members. Once that transition takes place, future profits may need to remain within the business to support the next generation’s livelihoods, investment requirements and borrowing commitments. That raises an important question: where will your retirement income come from?
The answer increasingly lies in building financial assets outside the farm business. Pensions, investments and other retirement savings can provide an independent source of income that allows retiring farmers to maintain their lifestyle without placing financial pressure on the farm. They can also reduce the need to draw income from the business at a time when the next generation is trying to establish itself. Building retirement provision is not simply about financial security. It can also help facilitate a smoother succession process.
When older generations have their own income streams, they may feel more comfortable transferring ownership and control. Equally, younger family members may have greater confidence to invest in the future of the farm knowing they can retain sufficient profits within the business.
The earlier retirement planning begins, the greater the opportunity to benefit from long-term investment growth. Regular pension contributions can build substantial funds over time, while also offering valuable tax advantages. Many farmers understandably focus on investing surplus cash back into the business. New machinery, livestock, buildings and land often take priority.
However, diversification should also extend to personal finances. A balanced approach can help ensure both the farm and the farming family remain financially resilient.
Professional advice can play a vital role in coordinating retirement planning with succession and inheritance tax planning. Every farm business is different, and the right strategy will depend on family circumstances, business structure and long-term objectives. Many people choose to invest money they won’t need to spend for a number of years and are comfortable leaving it invested through common ups and downs in value. Although they have historically delivered higher returns than savings accounts over longer periods, this is not guaranteed and you could end up with less than you put in. Thinking about how long you can invest for, and how you feel about these fluctuations with your financial adviser can help you decide whether this type of investment suits you.
The landscape for farming families is changing. While preserving the family farm remains a priority, creating independent retirement income is becoming increasingly important. By building pension and investment assets alongside the farm business, farmers can give the next generation the best chance of success while ensuring they have the financial freedom and security to enjoy their own retirement.
A well-planned succession strategy does not just protect the future of the farm, it protects the future of the entire farming family.
It's also worth remembering that tax rules and reliefs depend on individual circumstances and may change over time. As a result, tax outcomes will differ between investors and should be considered alongside your wider financial position, with professional advisers who can keep you on the right side of any regulation changes.
How can Accession help?
A succession strategy built on retirement planning is about joined-up thinking and early conversations to ensure that all parties are engaged for the best outcomes, with retirement pots that are given the best possible chance to grow and next generations that know what the plan is, rather than second guessing succession plans.
Accession specialises in providing high-quality, face-to-face intergenerational financial planning for farming families in Bedfordshire, Cambridgeshire, Northamptonshire and across the East of England.
Our Accession financial advisers – Emma Wilcock and Richard Jones - are Chartered Financial Planners and Fellows of the Personal Finance Society, accolades held by a very small number of financial advisers in the UK and meaning we are fully equipped to help guide you through planning for the future. With over 20 years experience in financial services each, they are also both Top-Rated Financial Advisers with VouchedFor, the independent review platform for professional services, and are supported by a growing, fast-paced and experienced support team.
If you or someone you know would benefit from speaking to one of our advisers about planning for the future, please do contact us on 01832 279170 or accession@sjpp.co.uk to discuss your requirements and get an appointment in the diary.
SJP Approved 4/8/2026