According to BMO Wealth Institute’s latest report, nearly nine in 10 (87%) American business owners feel secure about their retirement, despite only half (52%) reporting they have a personal financial plan in place and only 25% saying they have a formal business succession plan.
The report outlines some best practices for a business owner’s journey to retirement, including a discussion of the stages that span start-up to succession. According to the report, business owners should use these stages as a model for their personal retirement planning.
“By matching up their business and personal life cycles, American business owners will be able to develop a thoughtful plan and enjoy greater peace of mind as they head into retirement,” said Stephen Williams, vice president of U.S. financial planning strategy for BMO’s private bank division.
Other topics include the changing age of business ownership in the U.S. There are about 27 million small businesses, with the number of Millennial entrepreneurs—those age 20 to 34—doubling in recent years, to 29%. That translates to 160,000 startups founded by Millennials annually.
Another trend identified in the report is growing self-employment among Baby Boomers (Americans born between 1946 and 1964). That figure now stands at 24.5% of workers, compared with18% in 1992.
More on the report’s findings is available here.