One-Third of Small Business Owners Don’t Have Retirement Savings Plan

By The Manta Team - July 11, 2017

One-Third of Small Business Owners Don’t Have Retirement Savings Plan

New research reveals which types of retirement plans are most popular for small business owners.

Retirement is top-of-mind for professionals everywhere, but that doesn’t always mean they have a savings plan in place. To determine how small business owners are planning for retirement, Manta surveyed 1,960 small business owners and found that more than one-third do not have a retirement savings plan, while another 36% plan on seeking out other job opportunities upon retirement from their business.

The research also explores how small business owners’ retirement savings habits differ from consumers, their reasons for not having a savings plan, and which plans are the most popular among small business owners.

 

Business owners: At what age do you hope to retire?

  • Before age 40 – 10%
  • 40-55 – 19%
  • 56-65 – 29%
  • After age 65 – 42%

 

Once you step down from your business into retirement, do you plan to seek out other job opportunities?

  • No – 64%
  • Yes – 36%

 

Do you have a succession plan for your business?

  • No – 34%
  • Yes – 66%

 

Do you currently have a retirement savings plan?

  • No – 34%
  • Yes – 66%

 

If yes, which of the following retirement savings plans do you have? (Please select all that apply)

  • Self-Employed 401(k) – 43%
  • Traditional IRA – 31%
  • Roth IRA – 29%
  • Simple IRA – 13%
  • SEP IRA – 10%
  • Other – 26%

 

If no, why do you not have a retirement savings plan?

  • I don’t make enough profit to save for retirement – 37%
  • I used my previous retirement savings to invest into my business – 21%
  • I plan to sell my business to fund my retirement – 18%
  • I don’t see the need to save for retirement – 12%
  • I don’t have any plans to retire – 12%

 

Consumers: At what age do you hope to retire?

  • Before age 40 – 9%
  • 40-55 – 11%
  • 55-65 – 35%
  • After age 65 – 45%

 

Poll methodology: Between June 23 and June 27, 2017, Manta surveyed 1,960 small business owners via on-site poll. The margin of error is +/- 2.21 percentage points.