Millions of Small-Business Owners Unprepared for Retirement Transition

JPMorgan Chase has been warning that the American Dream is slipping away for many people. The bank's new report, 'Powering 10 Million Small Businesses,' points to a specific reason why: millions of aging small-business owners are approaching retirement with no clear plan for what happens to their businesses.

The report surveyed 1,000 business owners and found that while 70% are in the early stages of succession planning, just 8% say they've reached an advanced stage. The bank estimates that roughly 12 million businesses, representing nearly $10 trillion in assets, will change hands over the next decade.

The dysfunction is not limited to small businesses; a recent analysis of S&P 500 companies found that at more than one-third of firms sampled, the CEO and CFO were sitting in the retirement window simultaneously with no clear succession plan disclosed.