The verdict’s in. What we really need is action.
Almost all employers (93 percent) and employees (95 percent) who participated in the first-ever Millennium Trust Small Business Retirement Survey expressed concern that Americans won’t have enough money saved to maintain their lifestyle in retirement.
Still, some small business owners fail to recognize how paramount offering a 401k or similar plan is to helping workers save for the future. Only two-thirds of employers surveyed think it’s important, and a mere 23 percent strongly agree that having a retirement benefit would help attract and retain talent.
Meanwhile, nearly nine in 10 employees factor in whether or not a 401k is part of a company’s benefits package when choosing a new job. And the demand won’t go away anytime soon—Millennials are leading the charge.
Data show younger workers are eager to save. Ninety percent say a retirement savings option impacts their decision to stay with an employer. Around the same amount consider it when evaluating a new job opportunity and express interest in participating.
“Our latest survey is a wake-up call for small businesses. Time and time again we hear the value and importance employees place on having retirement plans and how a lack of access to a workplace savings option is contributing to the overall retirement crisis in America,” Gary Anetsberger, chief executive officer of Millennium Trust Company, said in a statement.
Data suggest small business employers who don’t offer a plan may be unaware of its significance or uninformed about how it works.
Just half of companies with 10 or more employees indicate they have looked into offering a 401k. A mere 23 percent have researched other options. Almost a quarter admit they are clueless, and say that’s the biggest barrier to adopting a plan.
For a significant portion, price is the concern. A little less than nine in 10 would be attracted to a program that doesn’t pose additional costs to the company.
Three-quarters are willing to share the cost, offering up to $60 per year per employee, to put a retirement benefit into place. The same number say they’d be more likely to consider a program that would also allow them to personally save for retirement.
“The misperceptions in the market about costs and limited options are hurting small businesses and employees. Traditional 401k plans have been great for Americans, but they aren’t a fit for every business. It’s time employers educate themselves on other viable savings solutions that can increase retirement readiness for Americans,” Anetsberger concluded.
Jessa Claeys is a writer, editor and graphic designer.
