It’s a fact that today’s company retirement system is failing small business employees. According to Chad Parks, CEO of Ubiquity Retirement, “Sixty-seven percent of small businesses don’t offer retirement plans.” Depending on which study you look at “most employees have less than $10,000 in personal savings, people are bound to be working way past the age of 65.” So what’s a solution for this important problem? I think a solution is for small business owners to utilize better plan design combined with independent advice delivered from a fiduciary. This article looks at a few of the new features that if added to plans often results in much better participation & savings rates for employees.
If you have not evaluated or benchmarked your 401k plan now is a great time to look at your plan and if adding new plan design options can improve the results your plan is trying to achieve. Check out the below article link from U.S. News discussing how small business owners can improve employee retirement plans