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TOBACCO OUTLET BUSINESS
MAY/JUNE 2013
A
s a business owner, you’ve
got a lot on your plate. From
overseeing employees and
meeting payroll to managing inventory,
running your own company can feel
all-encompassing. It’s easy to let
planning and saving for retirement take
a backseat to the demands of running
your business—and the reality is far too
many business owners do just that. In
fact, according to a 2010 report from the
Small Business Administration Office
of Advocacy, fewer than 2 percent of
business owners surveyed had a Keogh
(self-employed profit sharing) plan, only
36 percent owned an IRA and just 18
percent participated in a 401(k) plan. An
estimated nine million self-employed
individuals do not participate in a
retirement plan at all.
What’s more, statistics also suggest
that even those Americans who are
saving for retirement aren’t saving
enough. According to the Employee
Benefit Research Institute’s 2010
Retirement Readiness Ratings, a
whopping 47 percent of Americans
born between 1948 and 1954 are at risk
of outliving their retirement savings.
Among those born between 1955 and
1964, the figure is 44 percent.
The good news? First, part of this
retirement savings gap is due to
Americans living longer and healthier
lives than ever before. Sure, that means
you’ll need to stash away more savings to
fund what may be as much as 20 or more
years in retirement, but you’ll also enjoy
a longer, more active retirement than
any previous generation. Second—and
perhaps more comforting—following
the five steps below can help get your
retirement plan on track.
Step One: DO the Math
A solid retirement plan starts with
setting a goal. Yet, surprisingly few
Americans—just 42 percent—have
tried to calculate how much money they
need to save for retirement. Start your
retirement planning journey by using
your current living expenses as a basis for
assessing your anticipated needs.
Next, make adjustments for expenses
likely to change when you’re retired. For
example, if you plan to downsize to a
In FOcuS: RetIReMent
Surprisingly few Americans—just 42
percent—have tried to calculate how
much money they need to save for
retirement.
53
TOBACCO OUTLET BUSINES
MAY/JUNE 2013
