The Expectation of Partial Retirement Among Family Business Owners

Abstract

Decisions that the family business owner makes about retirement and succession are critical and could affect a large proportion of the work force. Compared to employees, family business owners may have more of an opportunity to retire partially, i.e., reduce the number of hours worked. The purpose of this study was to determine the characteristics of family business owners who expect to retire partially. Data on 1,155 family business owners from the 1998 Survey of Consumer Finances reveals that family business owners with more education and more income, who work more hours per week, and who have tax‐deferred retirement accounts expect to retire partially. There is a direct correlation between age and those choosing partial retirement, suggesting that many family business owners expect to retire partially. Married family business owners were less likely to expect to retire partially; instead, they would retire fully. The equity in the business, type of ownership, and involvement of other family members did not affect the expectation of partial retirement.

How retirees work: predictors of different types of bridge employment

“…Multinomial logistic regression was used to test all hypotheses because the criterion of interest was a trichotomous nominal variable with career bridge employment, non-career bridge employment, and full retirement as criterion categories (DeMaris, 2003;Kim & DeVaney, 2003;Tabachnick & Fiddell, 1999). Several multinomial logistic regression analyses were computed.…”

Retirement Savings Habits of Business‐Owning Families in the United States

“…This result could explain why many family business owners often seem to neglect to plan for their retirement (Kim & DeVaney, 2003) beyond their inability to plan for it (Hanna, Zhang & Kim, 2017). However, such wealth did not necessarily translate into actual retirement savings when there is a greater possibility of financial resource exchange, which appears to have a negative effect on the amount of retirement assets and IRA/Keogh ownership.…”

“…A majority of family businesses are organized as sole proprietorships (Kim & DeVaney, 2003), and they are small businesses (Marks, 2017) whose capacity to manage long-term sustainability is relatively limited compared to other types of business ownership or larger sized businesses with greater management and resource capacity. In particular, retirement of the owner-manager in these family businesses entails succession or longevity concerns for the firm.…”

Unternehmerfamilien: Über den Einfluss des Unternehmens auf Lebenslauf, Generationenbeziehungen und soziale Identität

“…Damit wird der Rückzug aus dem Unternehmen zu einem gleitenden Ende. In dieses Bild passt, dass Kim und DeVaney (2003) in ihrer Untersuchung eine relativ hohe Zahl an Familienunternehmern feststellen, die sich ein Altersteilzeitmodell vorstellen können. Diese "Unruhe" oder Aktivität ist nicht nur Ausdruck von körperlicher Fitness und "Spaß" an der Arbeit, sondern eben auch Ausdruck des Wunsches, weiterhin gebraucht zu werden und etwas bewirken zu können.…”