Small Business Retirement: Investing in Your Future Small Business Retirement: Investing in Your...

Small Business Retirement: Investing in Your Future Small Business Retirement: Investing in Your Future
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    09-Jul-2020
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Transcript of Small Business Retirement: Investing in Your Future Small Business Retirement: Investing in Your...

  • We haven’t thought about it

    Small Business Retirement: Investing in Your Future

    I don’t make enough profit to save for retirement

    I used my previous retirement savings to invest into my business

    I plan to sell my business to fund my retirement

    I don’t have any plans to retire

    I don’t see the need to save for retirement

    40% of owners are not confident they’ll be able to retire before age 65.

    MOREOVER, SMALLER COMPANIES ARE LESS LIKELY TO OFFER RETIREMENT PLANS FOR EMPLOYEES

    Those who don’t, cite expense, administrative burdens and lack

    of employee interest

    But retirement savings plans cost employers only 2.4% of an employee’s compensation.

    And retirement plans support employee recruitment and retention

    48% departing employees said a lack of retirement benefits influenced their decision.

    Work with a SCORE mentor to determine the best retirement options for you and your business.

    37%

    21%

    18%

    12%

    12%

    80%

    70%

    60%

    50%

    40%

    30%

    20%

    10%

    0%

    90%

    100%

    100

    % of businesses that offer retirement plans

    0% Too expensive

    to set up Does not have the resources to administer such a plan

    Employees are not

    interested

    Organization is too new

    Concerned about how to choose a

    plan provider

    71%

    28%

    51% 63%

    73% 87%

    63% 50%

    13%15%

    INSPIRES INCREASED EMPLOYEE ENGAGEMENT

    HELPS ATTRACT BETTER QUALITY EMPLOYEES

    DRIVES RECRUITMENT AND RETENTION

    Benefits of offering a 401K plan (small business with 2-50 employees)

    0 10 20 30 40 50 60 70 80 90 100

    of entrepreneurs have no retirement savings plan for themselves34%

    % of small business owners

    Sources: https://www.manta.com/resources/small-business-trends/small-business-retirement-savings-plan/

    https://www.paychex.com/articles/employee-benefits/survey-small-business-owners-uncertain-about-retirement

    https://www.ssa.gov/policy/docs/ssb/v75n2/v75n2p41.html

    https://www.pewtrusts.org/~/media/assets/2017/01/small-business-survey-retirement-savings_f.pdf

    http://press.capitalone.com/phoenix.zhtml?c=251626&p=irol-newsarticle&ID=2285440

    $

    Why don't small business owners have retirement savings plans?

    employees employees employees employees employees

    22%