We often hear of the Millennial generation failing to save adequately for their retirement, but the problem is not just confined to this group. A new survey has found that a large number of small-business owners also don’t have sufficient savings in place for when they stop working.
The research was conducted by Manta, an online small-business community, which looked at the attitudes of 1,960 small-business owners through an on-site poll.
Lack of Savings
The findings showed that 34% of this group of entrepreneurs don’t as yet have a savings plan in place for their retirement, which could mean they don’t have enough to live on or have to work for longer than planned.
The survey showed that there were a number of reasons for this lack of planning, with insufficient income (37%) being the main issue. Other reasons were investing their savings into the business (21%) and a plan to sell the business in order to finance their retirement (18%).
However, with the average couple enjoying a comfortable retirement spending £26,000 a year, and this figure rising to £39,000 for those having a more luxurious time, it’s essential that these business owners have a solid plan for how they are going to live.
A Retirement Plan
The first step to having a savings plan is to talk to your financial adviser, and they will have a number of back office systems for IFAs that can help them deliver the best solution for your needs. Even if you can only afford to start off with a small deposit, it still means that you have made a start and can begin building up your retirement fund.
Often small-businesses owners are busy people, and finding the time to look at your own finances can be hard, but a good financial adviser can take a lot of the stress away and do the research on what type of plan will suit you.
Rather than worrying about the fees involved, consider the benefits you’ll be getting from the back office systems for IFAs that they have access to and how this will ensure you can make the most of your retirement.
The survey did show some good points, with those entrepreneurs who do have a retirement fund saving in the right type of accounts.