How to Avoid the Uncertainty of
Self Employed Retirement Planning
One of the nice things about self employed retirement planning is that no one will tell you when it is time to slow down, time to retire.
However the time will probably come when you will want to slow down work less hours or perhaps not at all.
Long before that time comes as a business owner it is important to understand that retirement planning means building a retirement nest egg.
It is understandable that it could be difficult right now, because you're probably so busy building your business even the thought of retirement is something way off in the future.
But the years have a way of passing and the day will come sooner than you think when it comes to retirement planning and being self employed.
Statistically Canadians who reach the age of 65 without major health problems live, on average for another 20 years.
To maintain a standard of living, you'll eventually experts say need around 70% of your pre-retirement income.
But to me that is not a hard and fast rule.
Some People Excel At Self Employed-Retirement Planning And Some Don't Which One Are You?
Every business owner I have ever met with all seem to have different visions of their retirement.
Here are some other issues related to self employed retirement planning:
- It is believed that within the next five years, half a million small business owners will retire, resulting in the transfer of about $1.2 trillion by 2010, according in the report "Are Canadian Entrepreneurs Ready for Retirement?"
- In the next 15 years, half of Canada's current small business owners expect to retire. "This figure is staggering, even though we know that there has been 7.5% growth annually in the number of firms run by individuals aged 55 to 64 since 2000."
- Stats show that by the end of 2003, the cumulative unused RRSP room for self-employed Canadians ballooned to $370 billion, or nearly $20,000 per small business owner with an RRSP.
To me this means business owners are not topping up their retirement plans even worse they are not doing the planning for their retirement.
So by doing retirement planning and having a nest egg in place will give you flexibility, will allow you to decide what you want to do on the basis of how you feel rather than because you must keep on earning in order to survive.
Leave Self Employed Retirement Planning back to Canadian Retirement Planning