Division of Small Business

Saving for retirement? Surveys show many small business owners don’t

Small business owners could do more to prepare for retirement.

That’s the takeaway from two surveys of small business owners.

A survey of 1,960 small business owners by online small business website Manta found that more than one-third (34 percent) said they don’t have a retirement savings plan.

The most common reasons were:

  • “I don’t make enough profit to save for retirement” (37 percent)
  • “I used my previous retirement savings to invest in my business” (21 percent)
  • “I plan to sell my business to fund my retirement.” (18 percent)

Meanwhile, 12 percent each said they either don’t see the need to save for retirement, or don’t plan to retire.

A survey of 500 small business owners surveyed for the Spark 401k Small Business Retirement Planning Index showed similar results.

There are a number of ways small business owners can put money aside for retirement.

Of those small business owners who do have a retirement plan, the most common types, according to Manta’s survey, were:

  • Self-employed 401(k): 43 percent
  • Traditional IRA: 31 percent
  • Roth IRA: 29 percent
  • Simple IRA: 13 percent
  • SEP IRA: 10 percent
  • Other: 26 percent

At the Division of Small Business we’re all about helping Delawareans start and grow small businesses, including connecting them to the resources they need to make their business a success now and in the future.

Contact us to see how we can help you.



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