Forty per cent of small and medium business owners have no other superannuation arrangements in place beyond their business assets, according to new research, which revealed that plenty of these business owners will not retire rich.
The research, which was sponsored by RSM Bird Cameron, revealed that small and medium enterprise (SME) owners are postponing planning for retirement until very late in the business lifecycle and dedicating time and effort to growing their business.
RSM Bird Cameron national director of business solutions Terry Rodoni said the most concerning findings from the study were the lack of planning for transferring the business asset and retirement.
One-third of that 40 per cent are already over the age of 45, while 85 per cent do not have an exit plan and 87 per cent to do not have a succession plan in place, according to the research.
Realising wealth from a business takes time and effort, according to Rodoni, who said failing to plan properly could be a recipe for failing to realise the value owners have created.
“SME owners are time poor, but they need to recognise they will constrain their growth if they don’t adopt a planning discipline,” he said.
The research also revealed that 32 per cent of respondents intend to close their business down at retirement.
