A financialadvisoriq.com piece interestingly notes that “most small business owners in the U.S. haven’t put away for a comfortable retirement and could be betting too much on selling their business to fund it, according to a recent survey from BMO Wealth Management. Three-quarters of American small business owners have less than $100,000 saved for retirement, according to BMO’s survey of more than 400 business owners aged 18 to 64.” Other excerpts from the article:
“The figures aren’t much better even for the older ones: among those 45 to 64 years old, 68% have less than $100,000.
“Just 8% of all respondents have been able to put away more than $500,000 for retirement, but BMO says that’s typically only enough for about 12 years. Meanwhile, 81% of respondents are only saving $25,000 or less per year, the survey found.
“The majority of business owners plan to sell or transfer their business, which could — stress “could” — garner them enough to cover retirement.
But with a third of business owners having trouble finding successors, BMO warns that retirement savings are also important.
“Meanwhile, business owners hoping for Social Security to help them through retirement may be in for a shock.
“Recently, the cost-of-living adjustments simply haven’t kept up with inflation, InvestmentNews writes.”