Retirement has become more elusive than ever for retail business owners as the UK struggles to emerge from recession, according to new research.

The survey from Clifton Asset Management shows that 83 per cent of business owners feel their retirement is further away now than it was a year ago. This compares with 79 per cent in the previous quarter’s survey, and 59 per cent 12 months ago.

More than a third of companies in the survey said they had been forced to shed jobs over the past six months, with 10 per cent saying they may be forced to reduce their payroll even further. Just three per cent said they have not yet had to shed jobs but anticipate having to do so in the coming months.

Neil Greenaway, managing director of Clifton Asset Management, said: “Despite recent speculation about ‘green shoots’, we are still deep in the worst recession in living memory and it is no surprise to see this fact reflected in the way small business owners see their future prospects.

“These figures give some cause for optimism that the worst may be over, but they should be treated with caution. For example, the number of those who say they have not had to reduce staff numbers in order to survive, and furthermore do not anticipate having to do so, continues to fall each quarter, and is below 50 per cent in our latest survey.

“Likewise only a quarter of small businesses who took part in our survey are now operating a company pension scheme, and of those, a little over half are continuing to make regular contributions. This speaks volumes about our current financial plight and the degree of apprehension most business owners have about the future.”

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