Own your own business? If so, you’re probably juggling many different challenges. You have to provide service your customers, find new clients and manage your company’s cash flow. You also may have to manage your employees, develop new products and services and work to achieve your long-term goals. As a business owner, you probably wear many different hats.
With so many challenges on your plate, retirement may not be on your radar. If you’re like many business owners, you may think you can work as long as you want. Many self-employed individuals funnel their energy and resources into their business rather than plan for the future.
However, retirement is one challenge you may not want to ignore. It’s not a given that you’ll be able to work forever, and you may not be able to sell your business to fund your retirement. It’s always helpful to have assets set aside for retirement. Also, a business retirement plan may be a helpful tool to attract new employees.
Approaching retirement? If so, you may be thinking about how you’ll manage and avoid major financial risks. The biggest risk you may face is the need for long-term care. Long-term care is extended assistance with basic daily activities such as eating, bathing and mobility. It’s often provided either in an assisted living facility or in the home by family members or home health aides.
According to the U.S. Department of Health and Human Services, long-term care will be a reality for many seniors. The department found that today’s 65-year-olds have a 70 percent chance of needing long-term care at some point. The care is usually needed for a few years, but nearly 20 percent of those who need care require it for five years or more.1