Small business owners are putting off retirement as economic conditions worsen, new research suggests.
A survey from Clifton Asset Management (CAM) shows that four out of five small business owners feel that retirement is further away than it was a year ago.
Previous surveys showed just 56% of business owners were putting their retirement on hold. More recent research shows that 65% of small business owner managers were postponing retirement plans. The figure currently stands at 80%.
Some 35% of respondents say they do not plan to retire at all, up from 20% in the last survey.
Neil Greenaway, managing director at CAM believes the survey’s results provide compelling proof of the severity of the economic situation and of the direct impact it has on people’s retirement plans.
However, around 33% of the business owners who took part in the survey said they either may, or definitely will, start another business when they exit their current one.
Greenaway said: “Clearly the immediate outlook for the SME sector is not all bad. Nonetheless, the key findings of our latest survey tell their own story, particularly in regard to people’s retirement and pension plans, and the absence of any sign of a thaw in the freeze on bank lending.”
The survey also monitored the ease with which small businesses could secure credit, and the effect of governmental policies. The survey suggests that banks are still not lending, with only 9% of businesses reporting any noticeable improvement in terms of their bank manager being willing to discuss existing or new credit lines.
© Crimson Business Ltd, 2009