Business Owners: Are You Planning For Your Own Retirement?

As you grow your business and take care of your employees, are you planning enough for when you’re ready for what’s next?

First let’s take a look at the statistics: Only 62% of small business owners are saving for their own retirement, and 43% plan to rely on personal savings as their primary source of retirement income according to a survey by the Transamerica Center for Retirement Studies. Does this sound like you? If so, this means you spend so much time and effort on your business and employees, but perhaps not enough on yourself.

Retirement planning can be more complicated for small business owners, but there are several strategies that can help you save for retirement while also supporting your business. According to the Small Business Administration, there are about 30.7 million small businesses in the U.S., and they employ about 60 million people. However, only 28% of small business owners are confident that they're saving enough for retirement. Here are three ways to help you save:

1. Prioritize Retirement Savings: Make retirement savings a non-negotiable priority. Allocate a fixed percentage of your income towards retirement savings each month, just as you would pay other essential business expenses. Treat your retirement savings as an investment in your future, ensuring you are building a solid foundation for your retirement years.
2. Take Advantage of Retirement Accounts: Utilize retirement accounts specifically designed for small business owners, such as Simplified Employee Pension (SEP) IRAs, SIMPLE IRAs, or Solo 401(k)s. These accounts offer tax advantages and higher contribution limits compared to traditional IRAs. Consult with a financial advisor or tax professional to determine which retirement account suits your business structure and personal goals.
3. Seek Professional Guidance: Consult with an Oppenheimer financial professional who specializes in small business retirement planning. They can provide personalized advice based on your unique circumstances, help you create a retirement savings strategy, and navigate the complex tax implications. A professional can also guide you through retirement account options, investment choices, and assist in adjusting your financial plan as needed.

Still have questions? Take advantage of The Power of Oppenheimer Thinking by reaching out to your advisor, or find a professional in your area near you today.