Younger high-net-worth business owners are more confident that their long-term investment plans will achieve their retirement goals than older generations, according to a TD Wealth survey.
The Business Owner Retirement Readiness survey by TD Wealth of over 1,000 high-net-worth individuals who own a business found that 95 percent are very or somewhat confident that their financial plans will be able to generate the income needed during retirement. However, their confidence dwindles as they approach retirement age.
Millennial business owners are more optimistic about their post-retirement income, with 78 percent being very confident that their long-term investment plans will lead to the achievement of their goals, according to the report. Gen Xers followed with 69 percent and baby boomers were at 59 percent.
A majority of the business owners (70 percent) indicated that they work with a financial advisor. More millennials (77 percent) than boomers (64 percent) said they were more likely to work with a financial advisor. The report pointed out that business owners who work with an advisor are also significantly more likely to be confident in their future income compared with those not working with an advisor.
The survey found that 66 percent of business owners expect to retire between the ages of 51 and 75. Twelve percent of respondents age 55 and older plan to never retire, compared with 3 percent of business owners age 18 to 34.
Fifteen percent of those planning to retire younger than 50 are between the ages of 18 and 34, and 7 percent are between the ages of 35.
The survey, conducted in January and February, targeted business owners with investable assets over $500,000.