Just 4 in 10 Small Businesses Offer Retirement Benefits, Survey Finds
Courtesy of LIMRA
LIMRA research shows Americans’ top financial concern is affording a comfortable retirement and access to a workplace savings plan is the most effective way to get people to start to save for retirement.
However when it comes to small businesses (2-99 employees) only 42 percent offer retirement benefits – either along with insurance benefits or alone.
The good news is LIMRA research finds 40 percent of small business employers (2-99 employees) feel retirement benefits are more important now than three years ago with 57 percent say it is equally as important.
LIMRA research also shows there is a trend in the number of employees within the small business and the importance of retirement benefits. While only 37 percent of companies with less than 10 employees say they are more important now than three years ago, that number goes up to 64 percent for companies with 50-99 employees.
The larger the small business, the more likely they were to say retirement benefits are more important today than three years ago.
Separate LIMRA SRI research points out that retirement plan access is the top reason American workers start saving for retirement. Nearly 4 in 10 of all workers said they began to save for retirement because their employer offered a retirement savings plan.
While 36 percent of small businesses don’t currently offer retirement benefits to their employees, 4 percent plan to in the next two years, and 19 percent of them report they might.
Another way small business employees might be able to utilize workplace retirement savings plans is through multiple-employer plans (MEPs) — retirement plans that are sponsored by multiple employers.
Federal proposals in 2018 are intended to broaden the number of small employers who can participate in MEPs (by making them available to groups on unrelated employers), thereby expanding the number of employees who can access retirement savings plans at their workplace.
This should help increase the number of employees who can access retirement savings plans through their employment.


The NFL Faces A New Threat: An Evaporating Insurance Market
Economic Costs Of Shutdown Starting To Show
Advisor News
- The rise of the ‘gray divorce’ insurance client
- Succession planning: Building the future of your practice
- From loss to security: Supporting widowed clients with life insurance
- Plan now for lower Social Security benefits later
- The conversation almost no advisor is having yet
More Advisor NewsAnnuity News
- Empower Annuity Insurance Company of America Trademark Application for “EMPOWER WHAT’S NEXT” Filed: Empower Annuity Insurance Company of America
- Industry pushes back on linking ‘financial strength’ to annuity illustrations
- Sammons Enterprises & Sammons Financial Group Respond to Reports
- The Manhattan Life Insurance Company Acquires Union Security Life Insurance Company of New York
- Cayman Islands premier to meet with U.S. reinsurance regulators
More Annuity NewsHealth/Employee Benefits News
Life Insurance News
- NAIC SUMMER NATIONAL MEETING HIGHLIGHTS COLLABORATION AND ADVANCES PRIORITIES
- Wildfire smoke, increasing in frequency, has implications for morbidity
- Record IUL sales don’t diminish the need for continued customer engagement
- Benchmark International Successfully Facilitated the Transaction Between National Group Marketing Trust and New Era Life Insurance Companies
- Why the bond market is flexing its muscles, and why everyone needs to care
More Life Insurance News