Benefits August 5, 2010

Business Owners Aware of Retirement Savings Need

August 5, 2010 (PLANSPONSOR.com) - A new study from the Ewing Marion Kauffman Foundation shows that business owners are more conservative when it comes to saving and borrowing than generally thought.

Reported by

Rebecca Moore

Forty-five percent of business owners compared to 32% of non-business owners reported that it is important to save for retirement, and business owners are much more likely to report that they are saving for longer time horizons – identifying a savings horizon of five or more years.

According to a press release, consistent with the finding of longer-term investing and savings horizons, business owners reported a more precise link between the return they are seeking and the level of risk required to achieve it.

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Nearly the same share of business owners (69%) as non-business owners (73%) had a good idea of future income.

The study, “Business Owners, Financial Risk, and Wealth,” by Tami Gurley-Calvez is based on Federal Reserve Board Survey of Consumer Finances (SCF) data from 1989 to 2007 and can be found at http://www.kauffman.org/risk.