The results of TD Wealth’s annual Retirement Study revealed that 87% of business owners had their revenue impacted by COVID-1. It is therefore not surprising that 69% of them ranked economic and political uncertainty as their top concerns.
Mass affluent business owners, having at least a $1 million in net worth and household earnings of about $125,000 or more annually, expressed more concern about these crises (73%), compared to high net worth individuals, having $1 million to $30 million in investable assets ($67%).
Business owners have responded to their challenges by reducing operations (49%) and a quarter of them undertaking temporary or permanent closures. However, despite this extended period of crisis and volatility, 85% have not changed their retirement planning suggesting that business owners have the mindset of staying the course through these tough times.
“It’s no surprise that business owners struggled during the COVID-19 pandemic due to stay-at-home mandates and non-essential business closures,” said the Head of U.S. Wealth Shared Services Ken Thompson. “Fortunately, business owners recognize that despite the difficult and volatile economic times, it is important to continue saving for retirement and avoid adjusting a long-term plan for short-term volatility.”
Despite facing these difficult challenges, TD Wealth’s study revealed that high new worth business owners’ confidence remains high, having little change from year to year, 94% currently versus 95% in 2019. They expect their financial plans will be able to generate the income needed for retirement. However, mass affluent business owners show less confidence, only 82 % expressing comfort that their financial plans remain sufficient for retirement.
Learn more about COVID-19’s impact on small businesses
