How can small business owners solve their retirement dilemma?
As a small business owner, you’ve worked hard—dedicating time, capital, and care to build your company. But have you done the same for your retirement?
For many business owners, building their company requires attention now; planning for retirement comes later. However, this lack of attention to personal preparation may have serious consequences. Consider this: 47% of U.S. business owners have no retirement plan in place, and another 25% say they would simply close the business.1
Younger owners are even less likely to be saving for retirement. The SBA study found that less than 17% of owners under 35 had IRAs, compared with about 34% for those age 35 to 49 and 41% for those 50 and older.
Financial advisers warn that small business owners are making a mistake when their companies’ finances take priority over their personal ones. If their company goes out of business, owners could be left with little or nothing for their future.
The good news: When it comes to retirement planning, it’s never too late to start and with awareness comes action. Here’s where to start:
- Envision your ideal retirement. What does it look like? Take time to write down future priorities that matter most to you. For example, you might want to live in your home and limit your role in the business. What will it take to make this a reality?
- Understand your options. Do you want to keep the business and remain involved, or transfer it to a family member or sell it outright? There are a number of possibilities and each one needs to be considered. Your decision affects the business, your retirement and future well-being.
- Talk to someone. Your retirement solution may be a combination of immediate and long-term actions. A financial professional can work with you to help you develop a retirement strategy that matches your needs.
So while you’re building your business, don’t forget about building your financial future. Contact your New York Life agent today to explore your options. Simply use the “Talk to Us” tab or the “Consult an Agent” form on the page and an agent in your area will contact you at your convenience.
1Brian O’Connell, “Retirement Obstacles: Why So Many Small Business Owners Are Poor Stewards of Their Futures,” TheStreet.com, September 14, 2015.