More than one-quarter (26%) of small-business owners are not confident they will save enough to retire comfortably, according to a survey by TD Bank. The most jittery are Baby Boomers, with 28% saying they are not very or not at all confident that they have enough savings, compared with 21% of Millennials.
A possible key factor in this lack of confidence: Boomers started their current business at an average age of 43; Millennials began theirs at 26, on average, giving younger adults more time to expand the business and invest in retirement funds.
Most business owners (73%) do not have a financial adviser or dedicated banker for financial planning and small-business needs. Most go to family and friends for advice (45%), followed by the Internet (36%).
Among other findings:
- 47% of business owners said they do not yet have a retirement plan in place, while approximately one in four indicated that they would close the business.
- 27% who started the company from scratch said they plan to close their business when they retire, compared with only 8% of those who took over an existing business.
- 15% said they would transfer ownership of the business to family or co-workers.