Principal Financial Group has released the findings of a study conducted by Harris Interactive, which show that many small business owners have no plan for retirement. The group says that the economy creates disconnect between stated priorities and reality.
The study surveyed small to medium-sized business owners with 2-500 employees. Out of those surveyed, about 7 out of 10 owners or 66% report that they don't have an exit plan to transition their business in the event of death, disability or retirement. 70% focus on growing their business, 47% focus on achieving business stability, and another 47% focus on remaining active in business after retirement.
"Recent market events have forced most people to reassess financial priorities, but the task looms larger for business owners who must take stock of their personal and business needs," says Steve Parrish, national advanced solutions consultant for the Principal Financial Group. "Many owners said their retirement plan is to never retire, while others plan to fund retirement by selling their business. By not developing a plan to exit their business, they leave it vulnerable to be sold for less than it’s worth, creating a negative financial impact for themselves and their family."
Additional Findings:
- Health insurance was the top priority for business owners, yet more than half of owners (58%) do not currently offer this benefit.
- Business protection followed in importance, but according to the survey, six out of 10 (61%) do not have plans in place to help them protect their business in the case of death, disability or termination of key employees.
- Retirement plans came in at number three, yet only about one in five (19%) offer a 401(k) plan to employees.
"Our research clearly demonstrates owners are torn between their desires and their current reality," says Parrish. "The economic environment highlights the importance of preparing for the unexpected. While it’s understandable individuals will focus on the short term now, they need to make time to plan for their future so they can protect their business and meet their financial goals."
What are you priorities? Do you have a plan in place for retirement?
eHealth And NFIB Partner On Health Insurance For Small Business Employers Concerned About Employee Retirement PlansSmall Business Healthcare Sees ImprovementRetirement Worries Plague Small Business OwnersObama Proposes Tax Credit For Health InsuranceHighmark Announces Health Care Reform Tax CalculatorHow Health Care Reform Would Affect Small BusinessesGauging Your Bank's HealthConsumers Are Going Online More for ResearchWhat Consumers Think About Recession-Related Marketing
 | |||
| Do you have a business site? Submit your business related site FREE! | |||
| |||
Submit Your Article
Advertise
Newsletter
Comments
great blog mate!.. always
great blog mate!.. always enjoy your posts. you are obviously very talented at writing. keep up the top work!
Retirement Plans and Priorities
I am diversifying my income in multiple businesses in attempt to achieve balance. Hopefully, they are not all down at the same time. Find a business that can provide residual income, make investments in the Markets, Real Estate, and general savings. Look at the Tax implications, but don't put all your eggs in one basket or solely chase Income Tax reductions. People in their 20's, should be putting something away each paycheck for retirement as self-funding is the way of the economy today with so many businesses that do not offer retirement plans to their employees. If you self-fund, you will not rerstrict yourself to a job you may dislike because you need the benefits or retirement plan.
Of course a top priority is retirement, but so is paying the bills and creating businesses so you can retire later. You have to balance these goals out as they do depend on each other.
Retirement plan OK, Health???
Well I have been sorting my retirement plan after much advice from a very savvy friend. Bricks and mortar for me, even in the current economic state they are still holding their own and in 20years time they should be a nice healthy income which if the tax man doesn't sting me too much should be passed onto my family after I am gone. I don't trust pension schemes.
I do have to admit though I am not really giving much consideration to my health. This is easily over looked when busy.
Priorities health insurance vs retirement
Unfortunately, too many of us are living beyond our means. No retirement plan means that people are planning to fail.
Health insurance is important but there is always the possibility that you will remain healthly and die in your sleep. However, unless you plan to die early, you should have a retirement plan.
Start with what is available
What do they mean by "small business"? I'm small but not in the lower million range. I'm in the lower 100 thousand range. We don't have any extra cash to put toward retirement. Basically my business is my retirement. What category would my business/myself been pigeon holed as? Really all I'm wonder/question are the numbers and how they were tabulated. There is so much more behind why people are where they are that a simply statement that sums it all up always seems a bit suspect to me. Okay call me a cynic but there you go.
Post new comment