TORONTO – Small business owners are better prepared for their retirement than their employees are, says a new CIBC report. Canadian Entrepreneurs and Retirement found that 70 per cent of business owners had an RRSP compared 55 per cent of employees.

"The average annual RRSP contribution made by a small business owner is more than $6,000 - and that's about 50 per cent more than employees who don't have a pension plan," said Rob Paterson, Senior Vice President, CIBC Small Business Banking. "It just goes to show you that entrepreneurs are self-reliant in more ways than one."

Paterson also pointed out that nearly 60 per cent of Canadian entrepreneurs are between 35 and 55, and the average age of a micro business owner is 46. While a large majority of this group has an RRSP, not everyone contributes on a yearly basis. The study found that only 40 per cent of entrepreneurs made contributions in 2002.

The study also revealed that:

• 17 per cent of small business owners who earn less than $5 million in sales per year see business equity as an important source of retirement income.
• Over 40 per cent of small business owners aged 18 to 34 are using their RRSPs to finance their retirement.
• Over 30 per cent of small business owners aged 50 to 64 are using their RRSPs to finance their retirement
• Over 35 per cent of woman business owners plan to use their RRSPs to finance their retirement
• 27 per cent of male business owners plan to use their RRSPs to finance their retirement.

  A complete version of the report can be found online at www.cibc.com/ca/features/rrsp-sb/index.html.
  
  

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