Whether it’s a lack of sufficient retirement funds or simply enjoying their jobs, more Canadians are staying in the workforce after age 65.
More than a third (39%) of entrepreneurs plan to work until they’re in their seventies, and 14% say they’ll never retire, finds an Investors Group survey. Another 27% say they’ll exit between ages 65 and 69.
But what’s worrisome is 53% of these business owners don’t have a succession plan, and 69% of those without a plan are boomers.
“[Waiting until retirement] leaves little time to deal with what can be a complicated process,” says Jack Courtney, vice president, high net worth planning at Investors Group.
He adds, “While there can be great variation in their circumstances, they are all likely to need advice on tax strategies, investments and family wealth planning to maximize the fruits of their labour,” he adds.
Additional findings include:
- Only 14% have a written succession plan;
- 85% say family members aren’t interested in taking over their businesses;
- 24% would sell to the highest bidder; 18% to family; 17% to business partners;
- 56% will rely on RRSPs in retirement; 54% on investments; 41% on the proceeds from a business sale;
- 60% still want to be involved in their company after retiring, either as a financial advisor/mentor (30%), a consultant (22%) or a member on the company board (7%).
Read on for more succession planning tips.