Preparing for retirement is a vital part of being a small business owner. According to the U.S. Department of Labor, Americans will need 70-90% of their pre-retirement income in order to maintain their lifestyle into retirement.

Retirement Plans

Typically, whether a business offers a retirement plan is based on firm size, where companies with fewer than 100 employees are less likely to offer retirement plans compared to larger companies. However, many states are beginning to mandate all types of employers to offer some type of retirement plan to their employees in an attempt to create a more financially-secure workforce.

Develop an Exit Strategy

It’s important to know ahead of time what is going to happen to your business after you retire for a number of reasons. Selling your business or passing it on to a family member are two ways to ensure its continuity and maintain customer confidence. If you want to retire fully, you’ll need to design a proper exit strategy so that the business can continue to operate without you.

Tips to Save

1. Start saving now

2. Know your retirement needs

3. Contribute to your employer’s retirement plan

4. Don’t touch your retirement savings

5. Research your Social Security benefits

Have questions? Reach out to SBDP at info@beachcpafirm.com.