Canadian small business owners are financially better prepared for retirement than employees, according to a CIBC report entitled Canadian Entrepreneurs and Retirement.

“The average annual RRSP contribution made by a small business owner is more than $6,000 — and that’s about 50% more than employees who don’t have a pension plan,” says Rob Paterson, senior VP, CIBC Small Business Banking. “It just goes to show you that entrepreneurs are self- reliant in more ways than one.”

The report also found that 70% of entrepreneurs own RRSPs, compared to 55% of paid employees. Considering that the average self-employed person earns 10% to 15% less than paid employees, CIBC says this increased contribution is even more significant.

“Almost 60%of Canadian small business owners are between the ages of 35 and 55. With retirement approaching, it is reassuring to see that they are taking their financial plans very seriously,” said Paterson. “For micro businesses, retirement planning is even more crucial because the average age of a micro business owner is 46.”

In 2002, 40% of small business owners contributed to an RRSP, and Ontario had the highest RRSP contribution rate among entrepreneurs. However, almost 15% of small business owners aged 45 to 64 are not prepared for retirement. These are entrepreneurs who earn less than $30,000 per year and have little equity in their business.

The Canadian Entrepreneurs and Retirement is available on the CIBC Web site at www.cibc.com/ca/features/rrsp-sb/index.html.