That leaves a third of respondents without a financial plan for their retirement (and 5% said they are unsure), according to a press release of the results.
Fifty-six percent of small-business owners indicated they make their own investment decisions, and a little more than a third (35%) use a financial planner or other investment professional. When asked if they have financial planning assistance through a spouse’s employer, 84% of owners said they do not, 13% said they do, and 4% are not sure.
Sixty-three percent said it is “somewhat or very likely” they will have enough saved to last through their retirement, while 25% indicated it is “not very likely,” and 7% reported it is “not at all likely.”
When asked at what age they plan to retire, only 13% said before age 60; 28% said between ages 60 and 65; 18 said between ages 65 and 70; and 9% will retire past 70. Thirty percent indicated they do not plan to retire.
The press release said more than half (52%) of owners have an IRA account, and 29% have a Keogh, Solo 401(k), or a Simplified Employee Pension plan. Nearly three in four small-business owners (74%) reported the recession has reduced their retirement savings, while 19% said the recession had no impact, and 6% saw their retirement savings increase.
Of those owners who said their retirement savings have gone down:
- 12% saw a decrease of up to 10%,
- 24% saw a decrease of 10% to 20%,
- 17% saw a decrease of 20% to 30%,
- 24% saw a decrease of 30% to 50%,
- 19% saw a decrease of more than 50%, and
- 5% are not sure.
Twenty-three percent of survey respondents said they will eventually close their businesses, 19% will transfer ownership to a family member, 13% want to sell, 6% will hire someone else to run it, and 3% are not sure. However, 36% indicated no future plans for their businesses as they do not plan to retire.