Small Business Leaders Say Americans Are Not Adequately Saving For Retirement; Lack of Awareness of Different Retirement Plans and Importance to Employees
According to a survey done among small business leaders and employees, the sector in America is staring at a retirement crisis. According to results from the inaugural Millennium Trust Small Business Retirement Survey, 93 per cent of small business employers and 95 per cent of employees agree that Americans are not saving enough money maintain their lifestyle after retirement. More importantly, about 25 per cent of employees do not have any sort of retirement plan. Millennium Trust Company commissioned this first-of-its-kind survey. The results reveal a major discord between employers and employees about the retirement savings plans. While 88 per cent of employees think it is important to have retirement plans when choosing a new employer, just 67 per cent of small business employers think it is important to have a retirement programme for employees.
The survey also uncovered differing impressions of how important a retirement savings option is when considering employment:
- Ninety per cent of millennials are most likely to say a retirement savings option is important for staying with a current employer, and 91 per cent identify it as an important factor when considering a new employer.
- However, only 23 per cent of small businesses strongly agree that having a retirement benefit would help them attract and retain talented workers.
- As a result, 55 per cent of small businesses looked at a retirement plan, but still chose not to offer anything while 45 per cent admit they have not spent any time researching retirement programmes.
“Our latest survey is a wake-up call for small businesses. Time and time again we hear the value and importance employees place on having retirement plans and how a lack of access to a workplace savings option is contributing to the overall retirement crisis in America,” said Gary Anetsberger, Chief Executive Officer, Millennium Trust Company. “The misperceptions in the market about costs and limited options are hurting small businesses and employees. Traditional 401(k) plans have been great for Americans, but they aren’t a fit for every business. It’s time employers educate themselves on other viable savings solutions that can increase retirement readiness for Americans.”