Boomer Business Owners’ Retirement Plans
Financial and estate planners are saying that many baby-boom small business owners have not planned for succession at their business. Most expect to sell or close them. (Credit: iStock)
The impending retirement of thousands of business owners presents an economic challenge for Long Island and the nation because most haven’t made plans for what happens after they leave.
Studies estimate more than half of all privately held companies are run by baby boomers and 80 percent expect to sell or close them within the next 10 years. The statistics were cited Tuesday night by a panel of local financial and estate planners.
“Seventy-five percent of companies — and some estimates are higher — don’t sell,” said panelist Jesse Giordano, a financial planner with Morgan Stanley Wealth Management in Great Neck. “The owners just close the doors and walk away.”
He said this often happens because business owners haven’t prepared a family member or manager to succeed them, aren’t psychologically ready for retirement or haven’t considered how they will support themselves in old age.
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