Entrepreneurs without wealth? An overview of their portfolio using different data sources for the Netherlands

(Solo) entrepreneurs are mostly excluded from second pillar pensions in the Netherlands. To generate substantial additional income after retirement, they largely depend on voluntary participation in third pillar pension products or on other private arrangements. In this paper Mauro Mastrogiacomo (DNB), Yue Li (VU A) and Rik Dillingh (TiU) explore three main components of the disposable wealth of (solo) entrepreneurs: financial wealth, business equity and home equity. They use different datasets, some of them novel to academic research, and extrapolate the different levels of pre-retirement wealth of currently young entrepreneurs. They show that there is a large heterogeneity in wealth holdings across generations, that business equity is generally low, and that only some entrepreneurs, under favorable macroeconomic conditions, will achieve the same level of wealth as currently older entrepreneurs.

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

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