A recent survey conducted online by Harris Poll on behalf of Nationwide found that 29 percent of owners of businesses with less than 300 employees who offer 401(k) plans and plan to increase contributions say that they are doing so because the ACA has made health benefits less attractive to employees. Additionally, 43 percent of business owners who plan to increase contributions to their company's 401(k) plan say they are doing so because their plan is now more important for attracting and retaining employees as a result of the ACA.
For business owners who don't currently offer retirement benefits but plan to start in the future, 23 percent say it is because a 401(k) plan is now more important for attracting and retaining employees as a result of the ACA.
"The changing health care marketplace has created an opportunity for business owners to increase investment in retirement benefits offered to employees," says
Carter says that American workers need help preparing for retirement now more than ever. The survey found that 86 percent of small business owners say America's workers are facing a retirement readiness crisis. That's significant because, according to the
The good news is that business owners are taking action. The survey found that 3 in 5 small business owners who offer retirement plans (58 percent) say they plan to increase contributions, and 19 percent of business owners who don't currently offer 401(k) plans say they will offer them in the future.
"Retirement plan providers and advisors offer tools, resources and support to help business owners and their human resources staff minimize the time needed to manage a plan," says
Frustaglio says that when he talks with business owners, they often have misconceptions that prevent them from starting a 401(k) plan for their employees. Those include but are not limited to:
- Plans are too expensive for small businesses.
- Reality: Small business owners have options and can offer a plan that minimizes fee impact for both the owner and employee.
- It's hard to find a plan that can meet an individual business' needs.
- Reality: Plans of all sizes can be customized to deliver on the needs of the business' owner and employees.
- Small business retirement plans can't compete with large corporations' plans.
- Reality: Small businesses have access to the same retirement plan options as the largest corporations.
Business owners should contact their financial advisor if they have questions about their current retirement benefits plan or are interested in starting a plan. Nationwide also provides resources for business owners to learn about the options available to them at https://www.nationwide.com/401k-retirement-plan.jsp.
The Small Business Owner Study was conducted online by Harris Poll on behalf of Nationwide from
Nationwide, a Fortune 100 company based in
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