Right now, Baby Boomers account for 40% of small business and franchise ownership in the US. 75% of these businesses are currently profitable, and 35% have been in operation for more than 10 years. From restaurants to retail, tens of millions of Americans rely on Boomer-owned businesses for success. However, as the Baby Boomer population gets older, it’s natural to wonder: what happens to all these businesses when their owners retire?
The simple answer would be that the businesses passes on to the owner’s children. For many businesses, that prospect remains uncertain. Millennials are less likely to take over family businesses due to their wider array of career choices and desire for greater flexibility in a job. 58% of small business owners have no transition or succession plan.
The sad truth is that many small business owners may need to sell in order to fund their retirement. 45% of Baby Boomers in the United States have no retirement savings at all. Those who do have money saved away may need more. Over the last 20 years, healthcare expenses for a retired couple have nearly doubled. At the same time, the costs of long term care options have grown by 60%.
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