According to a new survey from BMO Financial Group, a lot Canadian small business owners are not ready to retire.
BMO Wealth Planning Strategy senior manger Chris Buttigieg was on the Sunday edition of Alberta Morning News and said many business owners aren’t planning for retirement as well as they should be.
“You want to set a plan in motion minimum of three or five years. Three to five years minimum in terms of starting to make preparations or plans for that transition from your business or that exit from your business onto retirement or another endeavor,” said Buttigieg.
“We found that 72 per cent of those business owners that we surveyed had only saved — they had saved less than ($)100,000 and only ten per cent had saved more than 500,000.”
Buttigieg said the rule of thumb is to have enough money for 25 years past retirement.
“It’s really important that they’re also looking at their sort of personal side of things. Their personal goals, their retirement goals, and making sure that they’re putting some savings aside. Aside from what they invested of course in the business.”
Buttigieg said a 25-year post retirement asset should be around $1 million. (djs)