“Listening to straight from small enterprise homeowners of all ages and understanding their challenges is vital for us to ship on our dedication to savers throughout America,” Renee Grimm, senior vice chairman of retirement plans for Capital Group, mentioned in an announcement.
“For the 1000’s of small companies who make up such a big proportion of U.S. corporations, providing a retirement plan doesn’t should be a ‘sometime’ merchandise. With the correct recommendation and assist, enterprise homeowners can uncover how the advantages outweigh the perceived obstacles.”
Millennial small-business homeowners (with a median of age 37) are the probably to view providing a retirement plan as important, with 77% calling it a enterprise necessity. Fewer Gen Z (67%) and Gen X (57%) respondents share that view, with Gen X the least ready to supply a plan regardless of being nearer to retirement age.
Amongst small-business homeowners with out a retirement plan, a gender hole emerged as 51% of ladies mentioned their enterprise is able to supply one, in contrast with 64% of males.
The primary obstacles cited have been price (36%), the idea their enterprise is simply too small (34%) and lack of administrative assets (32%). Of these with out a plan, 61% mentioned they might search recommendation from a financial adviser — a step extra widespread amongst males (76%) than girls (58%) — though 31% mentioned they don’t have an adviser.
Enterprise homeowners who already supply a retirement plan reported fewer worries about points akin to labor prices, know-how adjustments and money move.
Eighty-one % mentioned they’re glad they carried out a plan, citing improved worker retention (63%), morale (56%) and loyalty (44%) as key advantages.
“We are able to make a significant affect in offering entry to retirement for extra folks if we will help educate homeowners on the advantages for themselves and their staff of saving for retirement,” Grimm mentioned.
“Whereas correlation just isn’t causation, we will observe that enterprise homeowners who supply their staff a retirement plan appear to have better peace of thoughts concerning the state of their enterprise. The information suggests {that a} retirement plan may additionally assist alleviate some enterprise homeowners’ considerations, together with issues like attracting and retaining expertise.”
