Thanks to current economic challenges, 65% of business owners who participated in TD Wealth’s fourth annual Retirement Readiness Survey said they changed their retirement plans in the past 12 months.
“Record inflation and supply chain troubles have presented significant challenges for business owners, and while both show signs of improvement, the impacts will be felt into 2023,” James Beam, TD Wealth’s senior vice president and head of investment management, brokerage, planning, retirement & strategy, said in the Jan. 11 report.
“Business owners are depending on registered financial professionals to weather short-term volatility and help with the long-term success of their financial plans,” he added.
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The objective of the national online survey, conducted by Big Village, was to poll business owners about their retirement plans and the future of their business. It targeted business owners with more than one employee and household investable assets of $100,000 or more.
The survey was conducted in August 2022, with 724 responses collected.
Other key findings of the survey include:
- 54% of business owners surveyed report that their business has been negatively impacted by inflation and supply chain problems in the past year
- As a result, 31% have considered moving the location of or selling their business to offset rising costs (77% of those surveyed who work with a financial advisor consulted this professional about these options)
- 95% of business owners surveyed have concerns when it comes to achieving their financial goals, including inflation (63%) and economic uncertainty (56%). The survey found that rising interest rates and the threat of a recession are forcing business owners to re-evaluate their financial and retirement plans
- Of the business owners surveyed who changed their retirement plans in the past 12 months, the shifts included changing their asset allocation (31%), postponing retirement (30%) and lowering contributions toward their retirement (30%)
- Business owners ages 18 to 34 (70%) and 35 to 54 (74%) were more likely to change their retirement plans compared with those 55 and older (50%)
- However, 90% of respondents said they are confident that their retirement savings will generate the income that they are planning to live on
- 82% of those surveyed said they work with a financial advisor, with confidence in reaching retirement goals higher among those who do (83% compared to 75% of those without a financial advisor)
- 63% said they are exploring new investment options for their retirement portfolio, including digital assets (43%), private markets (40%) and environmental, social and governance-focused investments (30%)
TD Wealth, a business of Cherry Hill-based TD Bank, provides banking and non-banking services.