SME retirement plans in jeopardy, research finds
A new survey has found small business owners are at risk of watching their retirement plans fail, with SMEs underprepared when it comes to financial and contingency planning.
The research, released by REST Industry Super, found that one in five SME owners are unable to fund their living expenses for longer than a week of unplanned absence.
“SME owners are relatively unprepared for the future when it comes to planning for their financial security – in terms of both their ability to continue supporting their livelihood following an unexpected event, as well as their plans for an eventual retirement,” chief executive Damian Hill said.
Given that more than 50 per cent of business owners consider the sale of their business important in funding their retirement, Mr Hill said it is concerning that most respondents believe their businesses could not be profitable without their involvement in day-to-day operations.
“This gap highlights the importance of SME owners to look beyond the sale of their business to fund their retirement ... SME owners put themselves at risk if they rely solely on the sale of their business – and the assumption that it will remain viable for sale – upon retirement,” Mr Hill said.
Several pieces of research throughout 2016 have painted a similar picture for SMEs, with research by MYOB earlier this year showing 54 per cent of business owners feel they won’t have saved enough money when the time comes to retire.
The survey also indicated that 52 per cent of SME owners under the age of 50 have done no retirement planning at all.
JACK DERWIN
Monday, 21 November 2016
accountantsdaily.com.au
Latest Newsletters
Hot Issues
- Aged care report goes to the heart of Australia’s tax debate
- Removed super no longer protected from creditors: court
- ATO investigating 16.5k SMSFs over valuation compliance
- The 2025 Financial Year Tax & Super Changes You Need to Know!
- Investment and economic outlook, March 2024
- The compounding benefits from reinvesting dividends
- Three things to consider when switching your super
- Oldest Buildings in the World.
- Illegal access nets $637 million
- Trustee decisions are at their own discretion: expert
- Regular reviews and safekeeping of documents vital: expert
- Latest stats back up research into SMSF longevity and returns: educator
- Investment and economic outlook, February 2024
- Planning financially for a career break
- Could your SMSF do with more diversification?
- Countries producing the most solar power by gigawatt hours
- Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
- Quarterly reporting regime means communication now paramount: expert
- Plan now to take advantage of 5-year carry forward rule: expert
- Why investors are firmly focused on interest rates
- Super literacy low for cash-strapped
- Four timeless principles for investing success
- Investment and economic outlook, January 2024
- Wheat Production by Country
- Time to start planning for stage 3 tax cuts: technical manager
- Millions of Australians lose by leaving savings in default MySuper funds
- Vanguard economic and market outlook for 2024: A return to sound money
- An investment year of ups and downs
Article archive
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
October - December 2016 archive
- Investor habits: The good, the bad and the ugly
- Keeping finances in the family
- The inter-generational financial squeeze
- Merry Christmas for 2016, a Happy New Year and a prosperous 2017.
- ATO set to clamp down on range of super issues
- SME retirement plans in jeopardy, research finds
- SMSFs show restraint in hot residential market
- Investment's building blocks - always worth reinforcing
- Warnings issued on traps with CGT transitional rules
- Meet SMSFs' early and late arrivals
- Beware, the ATO is on the hunt for lifestyle assets
- 'Brexit means Brexit' means what?
- SMSFs tipped to be hardest hit by pension changes
- SMSF assets hit record, but funds still hoarding cash
- Markets caution advised as economic bubbles loom
- Stretching retirement income
- Some financial terms explained
- Market Update – September 2016
- Checking in on our 2016 economic outlook - and looking ahead
- Making a fairer and more sustainable Superannuation System
- Going undercover
- ‘Winners and Losers’ from new super proposals