A recent Manta survey found one-third of small business owners lack a personal retirement plan. The reasons they give for failing to plan vary. Some say they don’t make enough money to save for retirement (37 percent) or have used up their retirement savings to invest in their businesses (21 percent). Another 18 percent say they plan to sell their business to pay for their retirement, but that’s a strategy that only works if the business doesn’t depend on the retiring owner to stay successful.
Rieva Lesonsky writes in Allbusiness.com that too many small business owners are operating under the misconception that retirement planning is too expensive. This ignores the fact that 401(k)s help small business owners reduce their personal taxes and help cut their business taxes. Retirement plans are also a powerful recruitment and retention tool. In nearly half of small businesses with two to 50 employees, workers who quit cite the lack of retirement benefits as the reason. Read more…
