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A Better Tomorrow

Discover caring financial guidance and expert insights to help you achieve your financial goals for an even better tomorrow


How Do Small Business Owners Retire?

March 31, 2023

As a small business owner, planning for retirement might seem impossible. Unlike employees who sometimes have access to employer-sponsored retirement plans, small business owners are charged with creating and funding their retirement plans. However, with the right financial guidance, you can take control of your retirement savings and achieve financial security for a better tomorrow. Take a look at some of the tips we have compiled below to get you started.


Start Early

The earlier you start saving for retirement the better off you will be. By starting early, you can take advantage of compounding interest and investment growth over time. Ideally, you should start saving for retirement as soon as you open your business.

However, we understand the realities of limited cash flow in the beginning. If you have already opened your business, but haven’t started saving yet, it is never too late to get started. Try our retirement calculator to get an idea of how much you need to save 


Create a Retirement Plan

There are several options to pick from when choosing a small business retirement plan. These include SEP IRAs, SIMPLE IRAs, and individual 401(k)s, with each plan offering unique differences. Because every business is different, it is important to consider factors such as your business structure, your income level, and your retirement goals when selecting a plan. A trusted Centier advisor near you can help identify the option that is best for your needs.


Maximize your Contributions and Diversify your Assets

It is important to save as much as you are able. A good goal to aim for is 15% of your pre-tax income. If you are age 50 or older you can also take advantage of “catch-up” contributions allowing you to contribute additional funds. Assets should also be diversified to reduce risk and make the most of your returns.

It is important to diversify your retirement portfolio by investing in a mix of stocks, bonds, and other asset classes. Our trusted Centier Financial Partners can work with you to create a customized investment plan that works for you and your retirement goals.


Stay on Track

Now that you have created a retirement plan, it’s important to stay on track with your contributions and investments. You should review your plan regularly and adjust your investment and contribution strategy as needed.

As your business grows you might consider increasing your contributions. You might also look at offering a retirement option for your employees to help retain and attract talent. Something else to consider is an HSA account with investment options for you and your employees.


Planning for retirement does not have to be overwhelming. By starting early, taking advantage of maximum contributions, and staying on track you can look forward to a better tomorrow.



Investment and insurance products are:

• Not FDIC insured

• Not insured by any federal government agency

• Not a deposit or other obligation of, or guaranteed by, Centier Bank

• Subject to investment risks, including possible loss of the principal amount invested