Small business owners are largely ignoring their own superannuation needs which they hope will be covered by the revenue achieved from the sale of their business, according to research conducted by Aviva Australia.
Aviva’s general manager group business Shaun Williams says this presents a real problem for small business owners, particularly if other members of the family are involved.
According to the Aviva data, just over 60 per cent of owner/ managers have superannuation and the median total superannuation balance for these people is just $11,200.
“These figures are quite worrying and highlight a huge problem in Australia,” he says.
He argues that while many small business owners believe their business is their super, the reality is that in Australia 85 per cent of the 1.6 million small businesses have less than five employees and are predominantly family owned.
Business owners, Williams says, should consider whether they really want their superannuation to depend on the willingness of other members of the family to sell the business and whether they want the level of their super to depend on the future success of the business.
“Profit levels can rise and fall over the years, or you may need to inject further capital into a struggling business,” he says. “It is important not to jeopardise your future lifestyle because you are too busy looking after your business.”
