Americans harbor major retirement fears ... but fail to take action
The average startup launches with $ 17,500 in funding
Fall / Winter 2016-2017 | BWD 7
Americans harbor major retirement fears ... but fail to take action
Fifty percent of Americans are afraid of outliving their income or being unable to maintain their current lifestyle in retirement . Nearly 20 percent are worried about having enough money to cover healthcare expenses during their golden years .
The same survey also found that despite these valid fears , Americans are failing to take action to address them . For example , a quarter of baby boomers and more than half of millennials have less than $ 5,000 saved for retirement .
The average startup launches with $ 17,500 in funding
Options for funding entrepreneurial ventures are increasing in the U . S ., particularly with the growth of crowdfunding and the prevalence of informal investors . Still , entrepreneurs depend on bootstrapping and support from family and friends to finance startups , according to a report on entrepreneurship .
In 2015 , entrepreneurs needed a median level of $ 17,500 to start their businesses and financed 57 percent of that amount themselves .
Women reported needing half as much funding to start companies as men — $ 10,000 and $ 20,000 , respectively — suggesting that women felt they could accomplish what they needed with fewer resources or that they simply have fewer resources to apply to their businesses .
These findings indicate that when it comes to retirement , Americans are most afraid of the unknown . While they can budget for things such as leisure and travel , healthcare expenses and life expectancy are entirely unpredictable . Other findings from the survey include :
• Nearly one in five Americans doesn ’ t know how much they ’ ve saved for retirement .
• 37 percent of millennials have nothing saved for retirement .
Retirement planning doesn ’ t have to scare you . Contact your financial advisor or Rehmann today to develop a strategy that fits your unique requirements .
( Source : Indexed Annuity Leadership Council )
Beyond personal means , the most popular funding source for entrepreneurs came from banks , at 36 percent . The government also played an important role . In addition to financing 22 percent of all entrepreneurs , government programs were the most powerful source of funding for social entrepreneurs , revealing the importance of government policy in helping entrepreneurs create lasting economic and social value . Crowdfunding , a still-emerging source , contributed to the financial needs of 12 percent of entrepreneurs .
Entrepreneurs , on average , drew funding from :
• Self ( 57 percent )
• Banks ( 36 percent )
• Family ( 24 percent )
• Private equity or venture capital ( 24 percent )
• Government ( 22 percent )
• Employers or work colleagues ( 16 percent )
• Friends ( 15 percent )
• Crowdfunding platforms ( 12 percent )
( Source : Babson College )