Small-business owners have big personal finance concerns

RADNOR, Pa. (BUSINESS WIRE), Lincoln Financial Group released new research today that shows small business owners have big personal finance concerns. According to the company’s Consumer Sentiment Tracker, there are several insurance and retirement planning issues that top their lists.

Specifically, respondents who own small businesses (versus those who do not) are most concerned about:

• Having enough income in retirement (65% vs. 48%)
• The impact of taxes on retirement savings/investments (56% vs. 38%)
• Paying for long-term care expenses for themselves or a family member (54% vs. 42%)
• Ensuring dependents will be financially secure in the event of their premature death (51% vs. 41%)

The study also found that 62% of small business owners say that finances are a major factor or the biggest source of their stress versus 47% of those who do not own their own business.

“Small business ownership comes with a great deal of responsibility — not only for the business and its employees, but also for the owner and their family,” said David Berkowitz, president, Lincoln Financial Network, the wealth management arm of Lincoln Financial Group that provides advice and guidance through its extensive network of independent financial professionals – many of whom manage their own practice. “Our research shows that many people who own their own business may not be prepared with the right financial products and solutions to help them feel confident about their financial future.”

In situations like critical illness, disability or premature death, the impact on a small business owner’s family savings and lifestyle could be significant. Berkowitz recommends business owners protect against the unexpected: Life insurance, as well as long-term care and disability insurance products, can help mitigate some of these risks and protect their personal and professional interests. Life insurance can also help small business owners in their succession plans, particularly from an estate tax standpoint. With today’s longer lifespans, annuities can be a useful solution when planning for retirement income that needs to last for 30 years or more.

“Small business owners may also want to consider meeting with a financial professional to create a holistic financial plan, one that takes their goals into account and is designed to help them achieve positive outcomes,” said Berkowitz.

For more information about the research and what matters most to small businesses, please visit www.lincolnfinancial.com.

About Lincoln Financial Group’s Consumer Sentiment Tracker Study
Lincoln’s Consumer Sentiment Tracker is a research program that includes quarterly tracking surveys, as well as omnibus surveys throughout the year. The goal of this research is to gauge consumer sentiment on a variety of financial topics and examine trends over time. The 1Q 2023 data was collected in March 2023 using the Qualtrics survey platform. Responses were collected from a total of 1,004 U.S. adults, including 93 individuals who own their own business. The sample includes quotas to be representative of the total U.S. adult population.