Why Do Some Small Businesses Offer Retirement Plans?
The report’s key findings are:
- Smaller firms are less likely to offer a retirement plan than larger firms but, even so, about half do sponsor a plan.
- Data on these firms is limited, but they tend to have more highly paid and educated workers and operate in finance, health, and education.
- Firms without a plan cite financial uncertainty and worker disinterest as hurdles. They also cite costs, which may not be correct.
- The most useful next steps would be:
- clarification of the costs of introducing a retirement plan; and
- a comprehensive survey to identify the most likely future sponsors.