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SMSFs: Our 'hardest' jobs
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ASIC issues alert over big gaps in SMSF trustee knowledge
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Super savings gap for women stuck at 30%
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Statistics for all Australians
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Super set to play bigger retirement role
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Why SMSFs want estate-planning advice
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The power of financial role models
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Assess your retirement financial resources
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Time to check your risk exposure?
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Some general interest stats on SMSFs
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Check trust deed to protect super in estate planning
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Australia by numbers – Update
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Federal Budget 2018 – Overview
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Your Budget
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4 components of our 2018 Federal Budget
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Tools to help you manage your financial position are available on our site.
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Australia by numbers - Update
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Determine your retirement goals
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Article archive
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Quarter 2 April - June 2018
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Quarter 1 January - March 2018
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Quarter 4 October - December 2017
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Quarter 3 July - September 2017
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Quarter 2 April - June 2017
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Quarter 1 January - March 2017
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Quarter 4 October - December 2016
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Quarter 3 July - September 2016
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Quarter 2 April - June 2016
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Quarter 1 January - March 2016
Quarter 4 of, 2016 archive
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Investor habits: The good, the bad and the ugly
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Keeping finances in the family
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The inter-generational financial squeeze
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Merry Christmas for 2016, a Happy New Year and a prosperous 2017.
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ATO set to clamp down on range of super issues
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SME retirement plans in jeopardy, research finds
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SMSFs show restraint in hot residential market
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Investment's building blocks - always worth reinforcing
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Warnings issued on traps with CGT transitional rules
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Meet SMSFs' early and late arrivals
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Beware, the ATO is on the hunt for lifestyle assets
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'Brexit means Brexit' means what?
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SMSFs tipped to be hardest hit by pension changes
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SMSF assets hit record, but funds still hoarding cash
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Markets caution advised as economic bubbles loom
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Stretching retirement income
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Some financial terms explained
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Market Update – September 2016
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Checking in on our 2016 economic outlook - and looking ahead
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Making a fairer and more sustainable Superannuation System
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Going undercover
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‘Winners and Losers’ from new super proposals
SME retirement plans in jeopardy, research finds

 

A new survey has found small business owners are at risk of watching their retirement plans fail, with SMEs underprepared when it comes to financial and contingency planning.

       

 

The research, released by REST Industry Super, found that one in five SME owners are unable to fund their living expenses for longer than a week of unplanned absence. 

“SME owners are relatively unprepared for the future when it comes to planning for their financial security – in terms of both their ability to continue supporting their livelihood following an unexpected event, as well as their plans for an eventual retirement,” chief executive Damian Hill said. 

Given that more than 50 per cent of business owners consider the sale of their business important in funding their retirement, Mr Hill said it is concerning that most respondents believe their businesses could not be profitable without their involvement in day-to-day operations. 

“This gap highlights the importance of SME owners to look beyond the sale of their business to fund their retirement ... SME owners put themselves at risk if they rely solely on the sale of their business – and the assumption that it will remain viable for sale – upon retirement,” Mr Hill said. 

Several pieces of research throughout 2016 have painted a similar picture for SMEs, with research by MYOB earlier this year showing 54 per cent of business owners feel they won’t have saved enough money when the time comes to retire.

The survey also indicated that 52 per cent of SME owners under the age of 50 have done no retirement planning at all.


JACK DERWIN
Monday, 21 November 2016
accountantsdaily.com.au