Small-business owners not prepared for retirement, study shows

Even though the majority of small-business owners are concerned about their financial security in retirement, many have not estimated how much they will need, according to new research from The American College.

Unlike other workers, small-business owners are responsible for funding their own retirement, yet planning and saving for that time is not occurring among those surveyed by The American College. The study was based on interviews with 1,255 small-business owners—835 women and 420 men.

Among those surveyed, 77 percent of women and 74 percent of men said they have no written plan for retirement.

Mary Quist-Newins, Director of the State Farm Center for Women and Financial Services at The American College was worried by the study findings:

The lack of retirement planning by so many people is stunning, especially since business owners have no one else to rely on when it comes to putting their retirement plans in place.

According to our own survey of retired and soon-to-be retired online subscribers conducted last fall, starting too late and saving too little topped the retirees’ list of regrets. The Consumer Reports National Research Center surveyed 21,714 people from 55 to 75 about what they did right or wrong in preparing for retirement. Based on those responses, we compiled several costly retirement mistakes you should avoid, plus 7 easy ways to mess up retirement.

For more see 3 big secrets of happy retirees and How much money do you need to be satisfied? For more on retirement see our Consumer Reports Money section.

Financial Goals, Concerns and Actions of Women Business Owners (pdf) [The American College]