We’re always intrigued by an interesting survey, and when its subject is retirement readiness, well, doubly so. Which takes us to a planadviser.com story by Noel Couch—headlined Small Business Owners Often Overestimate Ability to Retire—that references a study by The Guardian Insurance & Annuity Company (GIAC). Excerpts from the article:
“The study suggests there is an increasing number of small business owners (SBOs) planning to use small business equity to help fund their own retirement. Thirty-five percent of SBOs polled by GIAC state they started their business specifically to fund their retirement, up from 25% in 2011. Thirty-nine percent believe they can retire earlier than planned due to their small business, up from 31% in 2011.
“One troubling finding from the study shows 35% of SBOs today are relying on the sale of their business in order to be fully prepared for retirement. But amid their confidence about retirement security, only 17% have actually taken steps to identify potential buyers for their businesses. This exposes a disconnect between retirement preparedness and aspirations among SBOs, GIAC observes.
“Overall, SBOs polled for the study are risk-tolerant and feel that having their own business is the best way to create the wealth they want. However, more planning is necessary in order for these aspirations to match their retirement needs.
“Half of the respondents report they spoke to their financial adviser when building a retirement outlook. Additionally, 84% say they are very satisfied or satisfied with their financial adviser, and 83% plan to keep their adviser when they retire. SBOs who use a financial adviser are more confident in their ability to sell their business and retire successfully, GIAC says.
“The survey denotes a disparity in responses depending on gender, as 45% of women SBOs confess they are confident about and financially prepared for retirement, compared to 56% of men. Additionally, women are more likely to prefer an adviser who pushes them toward their goals (33%), compared to men (23%). Men are more likely to want an adviser who is creative and takes calculated risks (28%) compared to women (21%).”