Only 14 percent of small businesses offer a 401(k) plan

Nearly half of small business owners are not confident about their own retirement savings; Only 17 percent say they feel an obligation to offer retirement benefits to employees.

A recent survey conducted by Harris Interactive on behalf of ShareBuilder 401(k) found that just 14 percent ofAmerica’s small business owners offer a 401(k) plan and 63 percent do not offer any form of retirement benefits to their employees. Nearly half (47 percent) indicated of small business owners are not confident that they are prepared for retirement. Few small business owners consider it their responsibility to help their employees prepare for retirement. Only 17 percent of small business owners responded that they felt a strong obligation to offer retirement benefits (a 401(k) or other retirement plan), with 46 percent reporting that they felt no obligation at all.

When asked why they do not offer retirement benefits, 54 percent responded not having enough employees to make it worthwhile, and 28 percent cited the inability to afford a company match (though a company match is not mandatory). While costs appear to be a hindrance for some, 63 percent of respondents said they had no idea what a 401(k) plan would cost to administer. Aside from helping America’s small business owners and their employees prepare for retirement, 401(k) plans are also considered a competitive advantage. Of those small businesses that do offer 401(k) plans, 70 percent reported they are important in attracting and retaining employees.

If you are interested in reducing the burden and cost of providing a 401(k) plan to your employees, contact a StaffScapes representative to discuss the benefits of partnering with us. You can contact StaffScapes at (303)466-7864 or info@staffscapes.com.