Cecily O'Connor
RedwoodAge.com

Being a small business owner comes with many benefits, but as retirement age approaches those perks are often outweighed by tough questions such as when and how to leave the job. 

Nearly nine in 10 owners plan to keep working past the traditional retirement age, and those who wish to retire are finding it difficult when they consider the health and financial "what-ifs" that come with age.

Nearly half of small business owners are concerned they will not have enough money to retire, according to a new Wells Fargo/Gallup Small Business Index survey. Meanwhile, about 47 percent continue to work because they fear they won't be able to pay for medical costs associated with a serious illness or accident. 

"More than one-third of small business owners are concerned that if they retire, they would not be able to maintain the standard of living they enjoy," said Rebecca Macieira-Kaufmann, who directs Wells Fargo's small business segment.

Regardless of these fears, the propensity to work hard and carve out your own employment niche increases with age. About one-third of all self-employed workers achieved that status at or after age 50, according to a 2007 AARP research paper. 

Given that, it's easy to see why some boomers would have a hard time letting go of work. About 87 percent of small business owners surveyed said they do not plan on stopping work completely, up 9 percent from the third quarter of 2005 when the survey was last completed. This year, about half of small business owners indicated they may cut back on their work. 

Keep On Keepin' On
Forty percent said they will not fully retire or cut back, and will only stop working when they are forced to do so for health reasons. That's up 5 percent from the third quarter of 2005. In these cases, succession planning is a must in the event of illness, disability, or even death.

The majority of those who do plan to cut back on work or stop working completely said they will do so at an older age than first planned, with two-thirds indicating this is due to financial reasons.

"I've always believed you should retire to something, not from something, and there's nothing I'd rather do than continue working in my business," said Carol Kuc, owner of Complete Conference Coordinators in suburban Chicago. "I've already passed typical retirement age, and rather than slowing down, I continue to seek out new business opportunities."

The survey is based on telephone interviews with 600 small business owners nationwide conducted in October.