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What’s Next For Your Micro-Business
Small-Business Owners Not Confident About Retirement
Small-business owners are seeing big cracks in their retirement nest eggs.
In a 2006 online poll of small-business members, the National Association for the Self-Employed (NASE) found that nearly 30 percent of respondents said they currently have no savings for retirement. About 25 percent said they have less than $15,000 saved for retirement.
In the NASE poll, only 7.5 percent of respondents said they felt very confident that they have enough money to live comfortably through retirement; 57 percent said they didn’t feel confident about having saved enough money.
A survey conducted late in 2006 by Harris Interactive on behalf of ShareBuilder 401(k) also found that many small-business owners are feeling shaky about their retirement. Nearly half (47 percent) of the small-business owners surveyed indicated they’re not confident that they are prepared for retirement.
Other findings from the Harris Interactive survey:
More than half of small-business owners plan to retire after age 65 or never (55 percent) Only 21 percent plan to retire at age 65 or earlier Although about one-third (32 percent) of small-business owners are likely to sell their business to help fund their retirement, about six in 10 (62 percent) are not
What You Can Do
No matter what your age, if you’re self-employed, you need to take control of your retirement planning.
One way to start is to learn about retirement plans available for the self-employed and small-business owners. You have a lot of choices. Here are some Web sites that will help you sort out your options and estimate your financial retirement needs.
"Retirement Plans For The Self-Employed"
This free online Success Skills Seminar from the NASE gives you details about different retirement plans tailored specifically for the self-employed. You’ll learn about individual retirement accounts (IRAs), Simplified Employee Pensions (SEPs), individual 401(k)s and more. Retirement Plans for Small Business
IRS Publication 560, Retirement Plans for Small Business, explains all of the details, from who can set up which type of plan to contribution limits. The Ballpark E$timate
The Ballpark E$timate is provided by The Employee Benefit Research Institute and American Savings Education Council. It’s an easy-to-use, two-page, interactive worksheet that helps you estimate how much you need to save to fund a comfortable retirement. Retirement Plan Management For Small Business
The information on this site can help small-business owners understand roles, responsibilities and resources for retirement plans. The site is joint effort between the U.S. Small Business Administration and Nationwide Financial Services. Plan Your Retirement
This site, from the Social Security Administration, provides detailed information about your Social Security retirement benefits. It also points out issues you may want to consider as you prepare for the future.
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(Posted February 2007) |
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