Just more than half (57%) of Canadian business owners who are within 10 years of retirement have business transition plans, find a CIBC poll. But the vast majority admit their plans are informal, despite the fact that many of them are counting on selling their businesses and living off the proceeds in retirement.
“For many owners the value of their business is a key part of their retirement fund; we have heard stories from some business owners that they rely on a few ideas on a cocktail napkin,” says Shelley Swanlund, head of Small Business, CIBC.
Additional findings include:
- 80% acknowledge their plans are informal;
- 14% created their plans in consultation with advisors, such as accountants, lawyers or bankers; 6% prepared a formal plan on their own;
- 40% of business owners have not identified a successor; and
- 28% have fully communicated their transition plans to stakeholders.
When asked to assess their retirement income sources, proceeds from the sale of their business ranked number one at 28%, followed by RRSPs, at 25%.
Here are some articles to help clients prepare for retirement.