Are You on Track for Retirement? A Look at the Numbers for Business Owners

[Kristi Allan]

Far too often, business owners rely heavily on the future sale of their practice or business to fund their retirement. While a successful sale can certainly boost your retirement savings, it should be viewed as the cherry on top, not the whole sundae.

Planning for retirement as a business owner is very different from someone on a traditional employment path. You don’t have a pension. There’s no employer-matched group RRSP. And in many cases, your personal and business finances are closely tied together. That adds complexity - but also opportunity.

I regularly speak with business owners who feel behind in saving and building wealth. If that’s you, you’re not alone - and you’re likely not as far behind as you think.

The good news? Business owners can catch up. You have more flexibility in how you save and invest, especially if you're incorporated. By strategically using your corporate structure and planning with intention, you can redirect more of your earnings toward long-term wealth.

To help you get a sense of where you stand, JP Morgan Asset Management has created two helpful visuals:

1. How much you should have saved based on your age and income

2. How much you’d need to save each year to get caught up, if you’re behind

 These charts offer a helpful benchmark but knowing where you stand is just the first step. The real value comes from building a plan that fits your specific income, lifestyle, and goals. If you’re unsure how to apply this to your situation, or if you want to explore how to use your corporate structure more effectively, let’s talk. It’s never too late to get organized and build a strategy that puts you back on track.  

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