Author: Alessandra Malito
Two-thirds of business owners have changed their retirement plans, according to TD Wealth research
Supply chain issues and inflation are affecting business owners’ incomes — and their retirement accounts.
Inflation topped the list of concerns for business owners, according to a TD Wealth survey of more than 700 business owners with $100,000 in investable assets and more than one employee. Economic uncertainty followed closely behind in second place.
Read the latest inflation report
These fears are forcing some entrepreneurs to change their retirement plans. Nearly two-thirds of respondents said they had changed their retirement plans in the past year, with nearly one-third saying they had changed their asset allocation, another three in 10 said they had delayed retirement, and the same percentage of people said they have reduced contributions towards their pension savings.
The concern is not far-fetched. Inflation hit a 40-year high last year, and supply chain problems have caused shortages in every sector, from baby formula to garage doors.
See: Supply chain bottlenecks are the new normal – here are some ways companies can solve the problems
Younger business owners are more prone to change. Half of business owners 55 and older said they have changed their retirement plans, compared to 70% of 18-34 owners and 74% of 35-54 owners. The vast majority of respondents in this survey — 90% — said they were still confident that their savings would be enough to live on in the future.
Read: People working in small businesses now have a better chance of pension security
Most of these survey participants (82%) had worked with a financial advisor and were investors who were more likely to have more confidence in their retirement goals than people who had not worked with an advisor (but only marginally — 83% had more confidence when work with a counselor versus 75% of people who did not have a counselor). These financial experts are also likely to suggest new ways to save for the future, including investment opportunities in retirement portfolios such as digital assets and ESG funds.
Investors are better off when they have a plan in place for their money and retirement plans, said James Beam, senior vice president and head of investment management, brokerage, planning and strategy at TD Wealth. “Without a plan or assessment, it’s hard to determine where you are,” he said.
– Alessandra Malito
(END) Dow Jones Newswires
01-12-23 1011ET
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