Many of us have dreams of leaving the 9-to-5 grind and working for ourselves. And since the 2008 financial crisis, many have done it — even if some didn’t really have a choice.
But many of these budding entrepreneurs, and even the people who have owned their businesses for years, are part of a growing problem: They aren’t saving for retirement.
TD Ameritrade’s Self-Employment and Retirement Survey found that 40% of the self-employed are not saving regularly for retirement, and 28% are not saving at all. The problem plagued all age groups: 29% of Generation X and 32% of Generation Y who were self-employed are not saving for retirement.
Also, 83% of self-employed who said they are saving for retirement said that at some point they needed to stop or cut back on their savings due to various obstacles.
“I think it’s a huge problem,” says Michael Piershale, president of Piershale Financial Group in Crystal Lake, Ill. Most small-business owners aren’t knowledgeable about retirement, because they focus on their business at the expense of everything else, he says. “For the first few years, it’s nip and tuck. They are human resources, the accounting department, marketing department, IT department.”
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