We have a cost communication problem

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.

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