Small businesses may drive the American economy, but their owners and employees may be unprepared to tackle retirement — and they could likely use the help of financial professionals to fix that issue.


Many small-business owners believe their businesses will fund their retirements, writes Lori Ioannou for CNBC, reporting on the Financial Planning Association and CNBC Business Owner Succession Planning Survey released in April. “ (Nearly 80) percent of small-business-owner clients plan to sell their businesses to fund their retirement,” Ioannou writes. “The proceeds are needed to fund 60 percent to 100 percent of their retirement needs.”


A survey conducted by TD Bank found more than a quarter of small-business owners aren’t confident they’ll be able to retire comfortably on their savings, according to anews release. “In terms of plans for retirement, nearly half of business owners said they do not yet have a plan in place,” the TD Bank survey found. Obviously, many small-business owners could use some guidance when it comes to retirement planning, and many may not have a trusted professional who can help them, the TD Bank survey found.


“The survey revealed that the majority of business owners (73 percent) do not have a financial advisor or dedicated banker for financial planning and small business needs,” according to the news release. “Small business owners are likely to be experts in their respective fields … but they might need a hand from an outside expert,” said Jay DesMarteau, Head of TD Bank’s Small Business Banking, in the release.” “By engaging a financial advisor, small business owners unlock access to custom tools and advice for managing their finances.”


In addition to not being engaged with a professional, small businesses may also not have plans because of financial costs, administrative burdens and fiduciary responsibilities, writes Nick Otto for Employee Benefit News, citing research from Prudential. “Multiple employer plans could be a more viable option for smaller employers and service providers. (These) are adopted by two or more unrelated employers who are unable to afford the responsibilities of sponsoring a plan themselves,” he writes. These plans could allow automatic enrollment, lifetime income solutions and streamlined administration, Otto writes.


Other alternatives exist, like the Savings Incentive Patch Plan for Employees, also known as the SIMPLE IRA. “This is for small-business owners, allowing them and their employees to contribute up to $12,500 annually (plus an extra $3,000 for those 50 or older) and either a 2 percent fixed contribution or a 3 percent matching contribution,” Joe D’Allegro writes for CNBC.


The important thing, though, is to get small-business owners thinking about their options, which shouldn’t only include selling the business, CPA Mark Kohler “I caution the small business owner. You never know when business can change,” Kohler said. His advice: socking money away in a nest egg outside the business, in case it fails. “Get talking to your strategist about which option is going to help you out,” Kohler said.