CHERRY HILL, N.J. and NEW YORK, Dec. 9, 2021 /PRNewswire/ — TD Wealth today announced the findings of its annual Retirement Readiness Study, revealing that the confidence of Mass Affluent business owners saw a sizeable 13% increase (up 95% vs 82% in 2020) when asked about their confidence in their financial plans’ ability to generate income needed during retirement.
Additionally, most High-Net-Worth business owners (97%) also expressed confidence that their financial plans will be able to generate the income needed during retirement (vs. 94% in 2020 and 95% in 2019).
But amid a pandemic, there are still concerns. Economic uncertainty and market volatility continue to remain top concerns when it comes to business owners achieving their financial goals this year. However, emerging as additional top concerns for business owners in 2021 was inflation and rising interest rates, especially as the country continues to grapple with the economic recovery in the wake of the COVID-19 pandemic.
“While business owners today are concerned about the external pressures that may be potential threats to their retirement confidence, they also continue to understand that a successful path to retirement means staying the course and weathering short-term volatility for potential longer-term success,” said Ken Thompson, Head of U.S. Wealth Shared Services, TD Bank.
Despite continued uncertainty, 62% of business owners reported that they did not make any changes to their retirement planning because of the pandemic. Of business owners who did make changes to their retirement planning, they cited changes such as asset allocation (44%), making plans to postpone retirement (34%) and lowered contributions to retirement (32%).
Hybrid Advice Boosts Retirement Confidence for Business Owners
Six-in-ten business owners (59%) reported that they work with a financial advisor and many found that this leads to greater confidence in their financial success in the long-term. According to the survey, confidence is higher among business owners with a financial advisor (55% compared to 43% of those without a financial advisor).
“Financial advice moved to center stage over the past eighteen months, and business owners are seeking out personalized advice and investment opportunities to meet their shifting needs. Hybrid and digital investing solutions are table-stakes for the wealth management industry, but the financial advisor is here to stay,” said Alyson Klug, Head of U.S. Wealth National Sales, TD Bank. “While the industry is seeing a rise in clients wanting to be more hands-on with their investing, those same investors must be comfortable investing and have the time to invest on their own, as well as be armed with the right information needed to invest. If any of those three pieces are missing, there is value to be found with having a financial advisor relationship to …….