Study: Number of Workers Financially Unprepared for Retirement at Crisis Level

WASHINGTON - NOVEMBER 03: Small business owner...
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In an effort to keep government as small as possible, quality retirement plans must become available to small business owners. There are alternatives for small business owners however they must take the initative to find them.

Small Business Owners Support Concepts Proposed in SAVE ActThe SAVE Act encourages small businesses to pool together to offer Multiple Small Employer Plans (MSEP) that are much less expensive than single employer plans and simplify an employer’s administrative requirements. H.B. 4742, sponsored by Ron Kind (D-WI) and David Reichert (R-WA), allows small employers to reduce costs by pooling their resources under a single plan with easier administrative requirements.

According to the survey, 71 percent of owners say when selecting an employee self funded retirement savings plan it’s important that the plan has flexibility to match or not match employee contributions and 62 percent say it’s important that multiple employers can group together to pool resources and reduce administration costs.

Four in five owners say when selecting a plan it’s important the plan has minimal amount of administration requirements and can be offered at a low price. Three in four owners say it’s important that the plan can be converted to better meet their needs as their business grows.

“The SAVE Act is an important step toward improving the lives of American workers who don’t have access to an employer-based retirement plan,” said Arvia.

Arvia said the SAVE Act legislation will aid small businesses and their employees by:

  • Improving Access — The SAVE Act encourages small businesses to pool together to offer Multiple Small Employer Plans (MSEP) that are much less expensive than single employer plans and simplify an employer’s administrative requirements.
  • Fiduciary Protection — By encouraging plan sponsors to work within the current defined contribution system, this legislation extends to millions of Americans important fiduciary protections that do not exist with other retirement accounts. It also enables small businesses to easily transition to a traditional 401k retirement plan as the business matures.

“There’s a retirement crisis looming and we need to work together to improve access to retirement plans for all Americans,” said Arvia. “Nationwide strongly supports initiatives like the SAVE Act that will help increase the retirement security for all Americans.”

There are alternatives for small businesses to offer a retirement plan for their employees. Multiple Employer Plans is one of those alternatives.

Please comment or call to discuss how this can help your business compete for talented employees.

  • Retirement-plan managers push for simplicity (401kplanadvisors.com)
  • The Changing Retirement Plan Landscape for Providers: Prepare or Exit Stage Left (401kplanadvisors.com)
  • An Employer’s Guide in Choosing which Retirement Plan to set up (401kplanadvisors.com)
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