A recent CIBC report says that one fifth-or more than 500,000-of Canada's entrepreneurs are planning to retire in the next 5 years, with another 30 percent by 2020. Less than one in four are as ready for retirement as they can and should be.

Are Canadian Entrepreneurs Ready for Retirement? points out that there is a "gap between plans and reality". Most entrepreneurs say they are counting on the sale of their business as their primary source of retirement income, with the remainder coming from RRSPs, pensions and other investments. Surprisingly, only one in three small business owners had maximized their RRSP contributions in 2003. And only two in five have a succession plan in place.

The report, based on a survey of 1,829 small business owners, noted that while the average retirement age for self-employed is 62, entrepreneurs under 35 were "much more optimistic about their projected retirement age" and expected to retire at age 54.