Two reports released recently by the SBA and spotlighted in The
Entrepreneurial Mind blog confirm what many small-business owners
may already know: Entrepreneurs and their employees aren’t saving
enough for retirement.
Saving for Retirement: A Look at Small Business Owners (PDF), written by SBA economist Jules Lichtenstein, assesses how well entrepreneurs are preparing for their own retirement. Among the results:
- Just 36% of business owners have individual retirement accounts (IRAs). Of those, one-third contributed during the 2005 tax year (latest data available). Only 18% of business owners have a 401(k) plan, and less than 2% have a Keogh plan.
- The business owners most likely to have and contribute to retirement accounts are non-minority, older, have higher education levels, own more established and more profitable companies and are more likely to own multiple businesses.
- The overall asset ownership of entrepreneurs affects how they save for retirement. Those who own homes and have other retirement accounts are most likely to have IRA, Keogh or 401(k) participation (in other words, those who have one type of retirement account are likely to have more than one.)
- Business owners who own micro-businesses (less than 10 employees) are less likely to own or contribute to retirement accounts.
To read the full, original article click on this link: Not Enough Entrepreneurs are Saving for Retirement | Small Business Trends
Author: Rieva Lesonsky