SMBs Share Concerns Over Their Own Retirement Readiness
While small business owners say they’re implementing artificial intelligence (AI) strategies to support employees, the reality is that it’s retirement planning that’s weighing heavily on their minds, shares new findings from ShareBuilder 401k’s April survey.
The research found that 63% of small business owners are having trouble planning for their own retirement, and some even find it more intimidating than navigating the complexities of AI in their workforce.
Even as 81% of owners currently save for retirement, 41% aren’t confident they’re allocating enough money to their future. Others are moving their retirement out, with the average number of owners pushing back their retirement age to 68, up from 65 in 2024 and 2022.
At the same time, plan sponsors are trying to add features that counteract rising inflation and pressing labor needs. Eighty-eight percent of owners say they’ve taken action to counteract these impacts, raising prices to protect margins (50%), working with lower-cost vendors (23%), and increasing employee wages (22%).
Others, like 72% of plan sponsors, have implemented AI to “support staff and improve efficiency.” While 75% say they technology has optimized their time, 21% describe AI integration as a top concern for their operations side in the year ahead.
Staffing difficulties
Plan sponsors shared their challenges in recruiting and retaining employees, with 76% describing hiring as “tough right now,” even when offering competitive pay and benefits.
When asked about their top challenges, 33% of businesses listed the cost of labor and hiring and retaining employees as a leading obstacle.
As a result, 70% of plan sponsors hope that adding AI will help them hire more employees in the future.
Despite the trepidations, most plan sponsors are optimistic when it comes to expectations about their business. Sixty-eight percent noted a boost in confidence with their business outlooks compared to last year, driven by marketing and sales (58%) and AI solutions (40%).
The ShareBuilder 401k Survey fielded responses from 500 small business owners who operate companies with one to 50 employees.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news.