Small Business Owners Are Increasingly Uncertain About Retirement
Small business owners often fail to apply their business and financial skills to their own finances. A recent KeyBank survey found that while small business owners have confidence in their financial planning abilities, most pay little attention to personal matters, especially retirement planning. As a result, small business owners are increasingly uncertain about when or whether they will officially retire.
The survey, conducted by Zogby International, shows that small business owners are living contradictions when it comes to finances and retirement. Of those surveyed, 78 percent say retirement planning should be considered by age 30 and almost half say they have their plans set and on track. However, 67 percent believe they will, or could, run out of money in their lifetime.
"There's conflicted confidence in what small business owners say they are doing and what they actually are doing,” says Marc Vosen, president of Key Investment Services. “Consequently there's real concern about how financially prepared they are for retirement. While they know what it takes to be in control, many have a laissez-faire attitude when it comes to managing their money."
The Retirement Reality is Setting In
When asked to describe their current financial outlook in terms of a reality TV scenario, survey respondents chose shows like "Survivor," "Amazing Race," "The Apprentice," "Fear Factor," and "Lost" to best describe their situations.
Small business owners are often preoccupied with immediate financial problems or procrastinate because financial planning sounds cumbersome, complicated and time consuming when it doesn’t have to be, says Vosen.
Reality is beginning to set in and changing circumstances are causing many small business owners to reconsider their retirement age. An overwhelming majority of those changing their plans are delaying their retirement date because they need more savings and are concerned about rising healthcare costs.
Unfortunately, many are in for a rude awakening. In reality many people don’t have a choice regarding retirement. An estimated. 40 percent of today’s retirees had to stop working earlier than they had planned, primarily due illness or injury. The average age when current retirees are forced to exit the workforce is just 59.
