Boomer retirement funding gap – delay in the hope for returning asset values
The recent survey by industry super fund REST of 1200 people aged over 50, confirms that those not all that far off retirement are largely unprepared.
Just 14 per cent feel ”financially prepared” for retirement;
a further 51 per cent say they are ”somewhat” prepared financially.
Thirty-five per cent say they are ”completely unprepared”.
This should be a substantial cause for concern given that, unlike 100 years ago when people retired at 65 they could expect to live just another 2-3 years, if you turn 50 in 2013 your can expect to live until age 82 !
Boomers ( born between 1946 and 1965 ) have seen their retirement savings ( super, investment property, share portfolio and even home ) values decrease as a result of the GFC and even though some of those values are now returning, research tells us that many ( nearly 50 % ) have delayed retirement sibe 2008.
Business owners are a subset of this group and the data is no different – many businesses which were “expected” to be sold in 2008-2012 have been delayed and owners are “waiting expectantly” for a return of better asset values – importantly business valuations especially by potential buyers are now a more complicated exercise and businesses need to be well prepared to extract maximum value.