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A large majority of owners and employees of America’s micro-businesses do not have access to retirement plans and are financially unprepared for retirement, according to the National Association for the Self-Employed (NASE).

The survey found that an overwhelming percentage of the nation’s micro-businesses — 80% — do not offer retirement plans of any type for either owners or employees. More than one-third of micro-business owners acknowledged they were not saving for retirement at all, according to NASE (www.NASE.org).

            The survey also found that the gap between what many business owners say they will need for retirement and what they actually have saved is considerable — nearly 13 percent have no savings at all, and 26 percent have less than $50,000 saved. However, nearly 29 percent believe they will need at least $1 million in savings before they can retire. Over three-quarters of micro-business owners are relying on the federal government as their primary source for financing retirement. Other Notable Findings:

·        The average preferred retirement age is 62 years, but the expected age for having sufficient retirement assets is 67 years.

·        One in five micro-business owners are unsure of the age at which they will have sufficient assets to retire.

·        A Simplified Employee Pension plan (SEP) is by far the most common form of plan offered by micro-businesses.

·        While finding information on retirement options is easy, only 40% are familiar with and understand the options available.