The traditional notion of retirement is undergoing a profound transformation among America’s business owners. New research reveals that entrepreneurs aren’t simply planning to hand over their keys and ride off into the sunset – they’re orchestrating complex wealth transitions while remaining actively engaged in their companies and communities.
A comprehensive Raymond James survey of 500 business owners nationwide shows that 70% view their businesses as their primary retirement vehicle. Yet surprisingly, only 45% plan to fully retire when they reach that milestone. This shifting definition of retirement represents one of the most significant financial planning trends emerging for 2025 and beyond.
“What we’re seeing is a fundamental reimagining of the entrepreneurial lifecycle,” says Bobby Eddy, head of private wealth management at Raymond James. “Business owners are increasingly focused on unlocking wealth from their enterprises without necessarily exiting them completely.”
This evolving approach creates complex planning challenges. According to Federal Reserve data, privately-held businesses represent approximately $13 trillion in wealth across the United States, with baby boomer entrepreneurs controlling a substantial portion as they approach traditional retirement age. The transfer of this wealth – whether through sales, family succession, or partial liquidation – will reshape the financial landscape over the coming decade.
The survey findings reveal three distinct strategies emerging among business owners planning for 2025 and beyond. The first and most common approach involves partial ownership transitions, where entrepreneurs retain minority stakes while transferring operational control. Nearly 58% of respondents expressed interest in this model, which provides immediate capital while maintaining income streams and strategic influence.
“Business owners have spent decades building not just companies, but relationships and expertise,” explains Miranda Reiter, certified financial planner and founder of She & Money Financial Planning. “They’re increasingly reluctant to abandon these valuable assets completely, even as they seek to reduce day-to-day responsibilities.”
The second trend involves leveraging sophisticated financing structures like Employee Stock Ownership Plans (ESOPs) or management buyouts. These arrangements allow for gradual transitions while potentially offering tax advantages. According to the National Center for Employee Ownership, the number of businesses exploring ESOPs has increased 22% since 2019, with further acceleration expected through 2025.
The third strategy centers on reinvention rather than retirement. Approximately 42% of surveyed business owners plan to start new ventures or consulting practices after stepping back from their primary businesses. This “retirement career” approach reflects broader societal shifts toward extended working lives and purpose-driven aging.
Financial advisors are adapting their approaches accordingly. “The retirement planning conversation has completely changed,” notes Evelyn Zohlen, former president of the Financial Planning Association. “We’re no longer simply calculating nest eggs and withdrawal rates. We’re helping entrepreneurs structure complex wealth transitions that might unfold over a decade or more.”
This evolution in business owner retirement planning comes amid broader economic uncertainties. Interest rate fluctuations, valuation pressures, and potential tax policy changes under the next administration have created urgency around succession planning. Nearly 65% of survey respondents cited economic conditions as a primary factor in accelerating their retirement preparations.
“The window for optimal business transitions may be narrowing,” warns Dennis Jaffe, researcher at Wise Counsel Research and family business consultant. “Owners who delay comprehensive planning may find themselves with fewer options as market conditions evolve.”
The geographic dimensions of these trends are equally noteworthy. The Raymond James research indicates that business owners in the Southeast and Mountain West express the strongest interest in partial retirements, while those in coastal urban centers are more likely to pursue complete exits or new ventures.
Industry patterns have emerged as well. Technology and professional services firm owners show the greatest propensity for phased transitions, while manufacturing and retail business owners more frequently pursue outright sales. This divergence likely reflects differing capital requirements and succession challenges across sectors.
The implications for financial advisors and wealth management firms are substantial. “Business owner retirement planning now requires multidisciplinary expertise,” explains Julie Genjac, managing director of practice management at Hartford Funds. “Advisors need competency in valuation, tax strategy, family dynamics, and psychological transitions – not just portfolio management.”
For business owners themselves, the evolving landscape demands earlier and more comprehensive planning. According to BEI’s Business Owner Survey, only 27% of entrepreneurs have formal succession plans despite 76% planning to transition within a decade. This disconnect represents both a challenge and an opportunity.
“The most successful transitions we’re seeing involve five-to-seven-year planning horizons,” notes Scott Snider, president of the Exit Planning Institute. “This provides time to maximize value, structure optimal tax strategies, and prepare psychologically for the next chapter.”
As we approach 2025, these emerging trends signal a fundamental shift in how wealth transitions from one generation to the next. Business owners are rewriting retirement rules, creating customized pathways that balance financial security with continued purpose and engagement.
For both entrepreneurs and the advisors who serve them, the message is clear: retirement planning now means wealth transition planning – a nuanced process that encompasses far more than simply walking away.
