Turns out, loving what you do leads to doing it longer.
A new study shows that retirement isn’t part of the plan for most small business owners. If you’re thinking about retiring, though, then you’re actually in the minority of small business owners according to a new report from Gallup.
The Wells Fargo/Gallup Small Business Index found that, if money were no object, 53 percent of small business owners would continue working in their current business. Only 27 percent of small business owners would retire completely, while 17 percent would start a new business, and 2 percent would work for someone else.
JOIN NFIB TODAY TO CONNECT WITH LIKE-MINDED BUSINESS OWNERS
The survey also asked small business owners if they would be able to live comfortably if they did decide to retire: 76 percent replied that they would be comfortable, an uptick compared to previous surveys. The same question was asked in 2014, 2010, and 2007. Small business owners were most optimistic they could live comfortably in 2007, and least confident in 2010.
As for how those business owners plan on remaining comfortable, 40 percent said that a 401(k), IRA, Keogh, or some other retirement savings account would be a major source of money. Perhaps surprisingly, only 27 percent of business owners said the value of the sale of their business would be a major source of income, with 38 percent saying it would be a minor source, and 33 percent saying it would not be a source at all. And for those business owners that will retain their businesses after retirement, 23 percent expect income from their business to continue be a major source of income, 41 percent thought it would be a minor source, and 34 percent didn’t expect to receive any income.
NFIB’s most recent small business optimism index tracks with the data in the Gallup survey showing business owners with higher confidence levels than previous years. The optimism index had a score of 105.3 in February, falling 0.6 points, but still remaining at a high level.
“It is encouraging that the index has persisted at 105 for three months in a row,” said NFIB Chief Economist Bill Dunkelberg. “Although optimism remains high, growth is still a problem because of restrictive government policies.”
RELATED CONTENT:
