Fifteen Million Self-Employed Americans to Next President: “Rising Healthcare Costs Are Keeping Us from Reaching Retirement”

TD Ameritrade Survey Suggests 5 Million Self-Employed Baby Boomers
Are Short $335,000 Individually – $1.7 Trillion Collectively – from
Saving $1 Million for Retirement

OMAHA, Neb.–(BUSINESS WIRE)–As many as 15 million Americans1 don’t have to report to “the
man” as owners of their own businesses but, as appealing as that might
sound, there are trade-offs – especially when it comes to saving for
retirement, according
to a survey from TD Ameritrade Holding Corporation

What keeps them from reaching their savings goal? Fifty-one percent said
they want the next President to reduce healthcare costs with 26 percent
saying rising healthcare costs have reduced their ability to save and 35
percent adding the rising cost of health insurance has hurt their

Self-Employed Not a Priority for Next President?

But the self-employed are largely not expecting any relief from the 45th
U.S. President since 64 percent do not expect their needs to be among
his or her top five priorities. In fact, over half (57 percent) think
political and economic changes over the past three to five years are
impacting their business. A higher minimum wage could add to their woes:

  • 40 percent do not support a $15 minimum wage hike; 30 percent believe
    it could negatively affect their business
  • 20 percent feel the effects of government regulations have worsened
    compared to three to five years

Anxiety Running Higher Among the Self-Employed

Most (76 percent) were traditionally employed before they set up their
own businesses and most (77 percent) figure they could still be
traditionally employed if they wanted. They remain self-employed despite
rising anxieties:

  • 61 percent are more anxious about saving money for retirement now
  • 59 percent are more anxious about earning a steady income from their
  • 53 percent are more anxious about expanding their business

The Real Cost of Self-Employment

Fifty percent are willing to make sacrifices. For example, 63 percent
say they don’t have the benefits of traditional employment (i.e. paid
vacation, better health benefits package, better insurance, professional
support). Further:

  • 52 percent have had to work long hours
  • 41 percent are never able to completely turn off work / relax
  • 40 percent have had to cope with constant financial pressure
  • 39 percent have had to prioritize their business over their personal
  • 30 percent have had to spend less time with their family

Goal Planning for the Self-Employed

While 55 percent say they are saving for retirement (when they can), the
average self-employed American saves $415 per month for non-retirement
items such as the following:

  • 45 percent are saving for an unforeseen emergency
  • 32 percent are saving for vacation
  • 22 percent are saving for home improvements
  • 16 percent are saving for college / education costs for a child

Over half (55 percent) say they are behind in saving for retirement and
48 percent say the inability to predict income is a problem with 41
percent saying they do not make regular contributions to savings. The
majority (69 percent) do not have a specific savings goal in mind, nor
do they have a backup plan for what to do if they don’t have enough when
they retire. Seventy-six percent simply say they’ll continue working if
they can’t save enough and 51 percent count on social security or
government pensions.

Of the 31 percent who have a goal in mind, they say they will need $1
million in order to retire – the same goal revealed in 2013 in TD
Ameritrade’s last self-employed survey

“Many of the self-employed recognize how important retirement savings
is, but they’re more likely to be living in the here-and-now, and they
have unpredictable income that can make savings a challenge,” said Dara
Luber, senior manager of retirement at TD Ameritrade, Inc., a
broker-dealer subsidiary of TD Ameritrade Holding Corporation. “Business
owners are sometimes put off by what they perceive as the hassle and
costs of plan administration, but it may be easier and more affordable
than many believe – and can include tax benefits.”

Visit Fresh
for four ways to build your retirement nest egg.

Set your small business retirement plans in motion by visiting TD

1: Bureau of Labor Statistics, US self-employed population of

About TD Ameritrade Holding Corporation
Millions of
investors and independent registered investment advisors (RIAs) have
turned to TD Ameritrade’s (NYSE: AMTD) technology,
and education
to help make investing and trading easier to understand and do. Online
or over the phone. In a branch or with an independent RIA. First-timer
or sophisticated trader. Our clients want to take control, and we help
them decide how – bringing Wall Street to Main Street for 40 years. An official
sponsor of the 2014 and 2016 U.S. Olympic and Paralympic Teams
, as
well as an official
sponsor of the National Football League
for the 2014, 2015 and 2016
seasons, TD Ameritrade has time and again been recognized
as a leader
in investment services. Please visit TD Ameritrade’s newsroom
for more information, or read our stories at Fresh

Brokerage services provided by TD Ameritrade, Inc., member FINRA (

Source: TD Ameritrade Holding Corporation

About Head Solutions Group
Head Solutions Group (U.S.) Inc.,
is a leading market research partner for Financial Services companies in
North America. With offices in New York, Toronto and Montreal, Head
delivers the deep customer insights that increase institutional
knowledge and propel business action. TD Ameritrade and Head Solutions
Group are separate and unaffiliated firms and are not responsible for
each other’s services or policies.

About the 2015 Self-Employed Survey
An online survey was
conducted with 1,505 U.S.-based self-employed adults aged 18 or above by
Head Solutions Group, between September 29 to October 9, 2015, on behalf
of TD Ameritrade Holding Corporation. Sample was drawn from major
regions in proportion to the U.S. census. The statistical margin of
error for the total sample of N=1,505 adults within the target group is
+/- 2.5% (assuming that participants are the same as non-participants).
This means that, in 19 out of 20 cases, survey results will differ by no
more than 2.5 percentage points in either direction from what would have
been obtained from the opinions of all target group members in the U.S.


TD Ameritrade Holding Corporation
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