Increasingly more small business owners are uncertain about whether or when they will retire as they fail to apply their business and financial skills to their own finances.

A recent KeyBank survey found that while small business owners have confidence in their financial planning abilities, the majority pay little attention to personal financial matters, most notably retirement planning.

The survey of 976 small business owners, fielded by Zogby International, shows that they are living contradictions when it comes to finances and retirement. Of those surveyed, 78 percent said retirement planning should be considered by age 30 and almost half (46 percent), said they have their plans set and on track. However, 67 percent believe they will, or could, run out of money in their lifetime.

"There's conflicted confidence in what small business owners say they are doing and what they actually are doing. Consequently there's real concern about how financially prepared they are for retirement," said Marc Vosen, president of Key Investment Services. "While they know what it takes to be in control, many have a laissez-faire attitude when it comes to managing their money."

Asked what they are more likely to do on a regular basis, 32 percent said they are more likely to get a physical exam from a doctor, 33 percent are more likely to get a tune-up from a mechanic, while only eight percent said they would review their finances with an outside expert.

REALITY SETTING IN

When asked to describe their current financial outlook in terms of a Reality TV scenario, 19 percent chose "Survivor." The balance of respondents selected "Amazing Race," "The Apprentice," "Fear Factor," "Extreme Makeover," and "Lost" to best describe their situations.

Reality is beginning to hit home and changing circumstances are causing 40 percent of small business owners queried to reconsider their retirement age. Of those changing their plans, an overwhelming majority (85 percent) are delaying their retirement date. Reasons cited for the delay include the need for more savings (64 percent) and concern about rising healthcare costs (47 percent).

FROM PROCRASTINATION TO PROACTIVITY

Another reason why retirement may be put on the backburner is that small business owners are more concerned with immediate financial problems or issues. When asked "what keeps you up at night", those surveyed put taxes, debt, government regulations and oil/energy costs at the top of the
list. Vosen said they may also be procrastinating because financial planning sounds cumbersome, complicated and time consuming, but he adds, it doesn't have to be.