Alexandra Marito
TD Wealth Survey Finds Two-Thirds of Business Owners Changed Their Retirement Plans
Supply chain issues and inflation are affecting business owners’ bottom lines — and their retirement accounts.
According to a TD Wealth survey of more than 700 business owners with $100,000 in investable assets and more than one employee, inflation was a top concern for business owners. Economic uncertainty followed in second place.
Read the latest inflation report
These concerns have prompted some entrepreneurs to change their retirement plans. Nearly two-thirds of respondents said they adjusted their retirement plans in the last year, with nearly a third saying they changed their asset allocation and another three-tenths saying they delayed retirement, with the same percentage saying they had changed their asset allocation. people said they lowered their contributions to their retirement savings.
These concerns are not far-fetched. Inflation hit a 40-year high last year and supply chain problems have caused shortages in everything from baby formula to garage doors.
See: Supply chain nights are the new normal – here are some ways businesses can manage the problem
Younger business owners are more likely to make a change. Half of business owners age 55 and older say they have changed their retirement plans, compared with 70 percent of business owners ages 18 to 34 and 70 percent of business owners ages 35 to 54 74%. The vast majority (90%) of those survey respondents said they still believe their savings will be sufficient to sustain themselves in the future.
Read: People who work for small businesses now have better chances of retirement security
The majority (82%) of these survey participants work with a financial advisor, and these investors are more likely (but only slightly — 83% people have higher confidence when working with a consultant compared to 75% of those without a consultant). These financial professionals may also suggest new ways to save for the future, including investment opportunities in digital assets and retirement portfolios such as ESG funds.
Investors are better off if they have a plan for their money and retirement, said James Beam, senior vice president and head of investment management, brokerage, planning and strategy at TD Wealth. “Without a plan or an assessment, it’s very difficult to determine where you are,” he said.
-Alexandra Marito
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01-14-23 1009ET
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