According to Sharebuilder 401(k). 74% of small businesses still don’t offer a retirement plan for their employees.
Many small business owners believe incorrectly, that their business is simply too small and that 401(k)s are too costly.
58% in the survey believe their business is too small to qualify for one, 32% say they can’t afford a match and 24% believe 401(k) plans are too expensive to set up and manage.
Clearly, there is a communication problem. While I assume that State mandated IRA programs will spur retirement plan coverage, I believe that as an industry, we need to end the urban legend that businesses are too small to sponsor a 401(k) plan or be an adopting employer in a pooled employer program.
