A new survey of more than 1,000 high net worth business owners finds 95 percent of respondents are very or somewhat confident their financial plans will sustain them during retirement.
The Business Owner Retirement Readiness survey, from Cherry Hill-based TD Bank and TD Wealth, found that overall the closer retirement age came, though, the lower confidence fell in that assertion.
Age is just a number?
Millennials boasted the highest confidence, at 78 percent of respondents, saying they were “very confident” in their long-term plans. Meanwhile, 69 percent of Gen X-ers expressed that same amount of certainty, as did just 59 percent of Baby Boomers.
When retirement kicks in also shifted among respondents.
Sixty-six percent of business owners said they expect to retire between the ages of 51 and 75. For those anticipating an early retirement, 15 percent of owners were from the 18 – 34 age group and 7 percent from the 35 – 54 age group.
And for some owners, retirement is not on the table at all. For respondents aged 55 years and older, 12 percent said they never plan to retire, while just 3 percent 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 percent, followed by a 40 percent response for market volatility and a 34 percent and 25 percent response for health care costs for baby boomers and millennials, respectively.
Piggy banks and mattress stashes
Thirty-four percent of owners estimated their retirement funds would come from a retirement savings plan, 21 percent from an investment portfolio, 11 percent from social security and 10 percent 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 percent 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.
TD Wealth said the survey ran from Jan. 24 – Feb. 4, 2019 with a total of 1,002 responses collected. According to TD Wealth, all sample was sourced from the Maru/Blue proprietary panel and partners.