Most entrepreneurs don’t think their businesses are big enough for 401(k)s. Others think it’d be too expensive to implement retirement plans. More than one-third just plan to cash in by selling their company at a later date.
A variety of factors deter entrepreneurs from saving, but there’s a major discrepancy between the percentage of small-business owners who say they’re confident they’re putting away enough for retirement and the percentage who aren’t saving at all. Sixty-two percent say they feel confident that they’re saving enough, but a full 25 percent of small-business owners report they aren’t saving a dime.
On top of that, a whopping 47 percent of small-business owners report that they are saving less than 10 percent of their income. These alarming stats emerged from the Spark 401kSmall Business Retirement Planning Index, released today by Capital One Advisors 401k Services.
Credits: Lydia Belanger