Retirement is a choice based on personal and economic factors. For many small business owners, running a business is a way of life as much as it is a way to earn a living. But the economic downturn has certainly impacted retirement plans for about 60% of small business owners.
According to a Wells Fargo / Gallup Small Business Index poll released on October 1, 47% say they don’t plan to retire until health reasons force them to; another 41% plan to cut back but stay involved. Only 10% plan to retire altogether.
Many owners have indicated that their target retirement age has risen: 69% now say 65 or older, versus 41% in 2005 and 52% in 2007. Only 11% plan to retire before age 60, down significantly from prior polls.
Less comfortable retirement
Before the recession, eight in 10 of small business owners thought they’d have enough money to live comfortably in retirement. Now, that number is fewer than one in three. Only one third view the value of the sale of their business as a major source of retirement income; 28% do not even view it as a source.
Money isn’t everything
While the survey clearly shows that financial concerns are impacting retirement decisions, it also indicates that small business owners love what they do. More than half (51%) would continue working full- or part-time in their current business if money was not an issue and 18% would start another business.
Where do you fall on this spectrum?