CHERRY HILL, N.J. and
NEW YORK, June 5, 2019 /PRNewswire/ -- Retirement can come
with mixed emotions – a culmination of one's professional career to
celebrate, as well as the uncertainty and anxiety about life's next
chapter. What's more, retiring business owners often have their own
unique set of doubts, which can mount as retirement approaches.
According to TD Wealth's Business Owner Retirement Readiness
survey of over 1,000 high net worth individuals who own a business,
95 percent of those surveyed are confident (very or somewhat) that
their financial plans will be able to generate the income needed
during retirement. However, as business owners approach retirement
age, confidence dwindles.
Millennial business owners reported the highest confidence in
their post-retirement income, with 78 percent very confident that
their long-term investment plans will lead to the achievement of
their goals, followed by Gen Xers at 69 percent. Despite being the
closest to retirement of the age groups surveyed, only 59 percent
of baby boomers are very confident that their long-term plans will
allow them to achieve their goals.
"High net worth business owners face a myriad of challenges when
it comes to their financial security in retirement," said
Ken Thompson, Head of Trust &
Investments for TD Wealth. "A financial plan is not only crucial to
having confidence in retirement, but also to confidence in a
business owner's exit strategy, succession and estate planning, and
other priorities that are vital to achieving financial goals."
Advisors Can Boost Confidence
Seven out of ten business owners surveyed indicated that they
work with a financial advisor. Surprisingly, millennials were more
likely to work with a financial advisor (77 percent) than baby
boomers (64 percent). Business owners who work with an advisor are
also significantly more likely to be confident in their future
income compared to those not working with an advisor.
"While everyone can benefit from working with a financial
planner regardless of age or net worth, business ownership adds an
entirely new dynamic and complexity to retirement planning that
necessitates a very particular expertise," said Thompson. "Just as
the long-term goals of an individual business are unique, so too
are the individual financial goals for each business owner. Working
with a professional advisor to establish a bespoke plan can help
business owners prepare and feel confident as they head into
retirement."
Retirement Ready or Not?
In addition to the confidence business owners currently
have in their retirement plans, and the relationship between their
confidence and whether they work with an advisor, the survey
explored other influences determining their retirement
readiness. Such factors included desired age of retirement,
what concerns could affect their goals and where respondent's
income will be derived from upon retirement.
The survey found that 66 percent of business owners expect to
retire between the ages of 51 and 75. One in eight respondents age
55 and older plan to never retire (12 percent vs. three percent of
younger business owners, ages 18 to 34). Those planning to retire
at age 50 or younger skew younger. Fifteen percent of those
planning to retire younger than 50 are between the ages of 18 and
34, and seven percent are between the ages of 35 and 54.
Many business owners also have concerns around how external
factors may impact their ability to achieving their financial
goals, including economic uncertainty (50 percent) and market
volatility (40 percent). Not surprisingly, concerns around health
insurance costs increase with age, from 25 percent among
millennials to 34 percent among baby boomers.
When it comes to retirement income, a healthy mix is important.
Thirty-four percent of high net worth business owners estimate
their retirement income will come from retirement savings plan (34
percent), investment portfolio (21 percent), Social Security (11
percent) and personal savings (10 percent), with the balance coming
from other sources.
Survey Methodology
TD Wealth commissioned
Maru/Matchbox to conduct a survey targeting business owners with
investable assets over $500,000, with
the objective of finding out about their retirement plans and the
future of their business. Questionnaire was five minutes in length
and fielded between January 24 and February
4, 2019. All sample is sourced through the Maru/Blue
proprietary panel and partners. A total of 1,002 responses were
collected.
About TD Wealth
Through TD Bank N.A.,TD Wealth's
Private Client Group and its affiliates work with mass affluent and
high net worth individuals and institutions to help build, preserve
and transition wealth. TD Wealth is committed to helping personal
investors, institutional and non-profit organizations gather and
potentially grow their assets by building long-lasting
relationships, and is affiliated with one of the 10 largest
financial institutions in the U.S., TD Bank, America's Most
Convenient Bank®. From private banking, securities, investment
advisory services, private trust, and estate planning, to
institutional trust, including retirement planning, captive
insurance and trustee services, TD Wealth creates and delivers
customized and integrated wealth management solutions. Banking,
investment and trust services are available through TD Bank.
Securities and investment advisory products are available through
TD Private Client Wealth LLC, member FINRA/SIPC (TDPCW).TD Wealth
is a service mark of The Toronto-Dominion Bank. For more
information, visit http://www.tdbank.com/investments.
TD Wealth is not a tax or legal advisor. You must consult with
your own tax and legal advisors for specific advice pertaining to
your estate planning needs.
About TD Bank, America's Most Convenient
Bank®
TD Bank, America's Most Convenient Bank, is one of the 10
largest banks in the U.S., providing more than 9 million customers
with a full range of retail, small business and commercial banking
products and services at more than 1,200 convenient locations
throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas
and Florida. In addition, TD Bank
and its subsidiaries offer customized private banking and wealth
management services through TD Wealth®, and vehicle financing and
dealer commercial services through TD Auto Finance. TD Bank is
headquartered in Cherry Hill, N.J.
To learn more, visit www.td.com/us. Find TD Bank on Facebook at
www.facebook.com/TDBank and on Twitter at
www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more, visit
www.td.com/us.
About MARU/Matchbox
MARU/Matchbox is a professional services firm dedicated to
improving its clients' business outcomes. It delivers its services
through teams of sector-specific research consultants that have
technology in their DNA, specializing in the use of Insight
Community and Voice of Market technology. MARU/ Matchbox's research
drives decision-making across all aspects of customer experience,
including innovation, product, branding, commercialization and
communications.
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SOURCE TD Wealth