Retirement a distant dream for many entrepreneurs

KATHY FLAXMAN

Toronto hairstylist Anthony Avola started to prepare for his retirement years ago. Over a 40-year career, he sold off his interests in three hairstyling salons and, more than two decades ago, purchased what is now called the Avola College of Hairstyling & Esthetics, hoping to live off the income it all would provide.
But at 72, he still has scissors in his hands, working four days a week as an employee of an upscale salon he used to co-own.
“I work because I like it,” Mr. Avola says. “But there’s also the lifestyle issue. I need to work to maintain my lifestyle.”
He’s not alone. Studies show that retirement is a more distant dream for many entrepreneurs than for others in the work force.
Nearly one in five – 19 per cent – of the self-employed believe they will be able to retire comfortably only at the age of 70 or beyond, according to an April survey by the Canadian Federation of Independent Business (CFIB) of more than 7,800 respondents. Another 28 per cent don’t see themselves leaving work behind until they are 65 to 69.
And entrepreneurs do tend to retire later than others: The average retirement age of the self-employed – (65 in 2008) – was three to five years higher than for employees in the private or public sectors, the study noted.