A new survey of more than 1,000 high net worth business owners finds 95% of respondents are very or somewhat confident their financial plans will sustain them during retirement.
The Business Owner Retirement Readiness survey, from TD Bank and TD Wealth, found that overall the closer retirement age came, though, the lower confidence fell in that assertion.
Millennials boasted the highest confidence, at 78% of respondents, saying they were “very confident” in their long-term plans. Meanwhile, 69% of Gen X-ers expressed that same amount of certainty, as did just 59% of Baby Boomers.
Of business owners, 66% said they expect to retire between the ages of 51 and 75. For those anticipating an early retirement, 15% of owners were from the 18 – 34 age group and 7% from the 35 – 54 age group.
For some owners, retirement is not on the table at all. For respondents aged 55 years and older, 12% said they never plan to retire, while just 3% of respondents aged 18 – 24 expressed the same sentiment.
Alas, external factors, the survey showed, caused owners concern about their ability to achieve the financial goals they’ve set. Economic uncertainty weighed the heaviest with 50%, followed by a 40% response for market volatility and a 34% and 25% response for health care costs for baby boomers and millennials, respectively.
The survey found that 34% of owners estimated their retirement funds would come from a retirement savings plan, 21% from an investment portfolio, 11% from social security and 10% from personal savings.
Seven out of 10 of those surveyed said they work with a financial advisor – with millennials again leading the pack at 77% of respondents. TD said that owners working with an advisor were more likely to be confident in their future income, compared to those who do not.