Find out what other small business owners have to say about their company’s 401(k)
posted by Fisher 401(k) Sept 15, 2016
Want to know what other small business owners have to say about their 401(k) plan? We did too. That’s why we held focus groups in June 2016, to find out exactly what people think. And we learned a lot.
Small businesses hold a lot of sway over what retirement will look like for Americans after a plan review.
MOST Employees say they are not financially prepared for retirement.
Even though employees are participating in a company-sponsored 401(k) plan, they generally had low confidence levels about saving enough for retirement. Worried, they feel under-educated on financial topics and don't know who to turn to for help.
EMPLOYEES DON'T WANT TO SPEAK UP
What did employees say they want more of? The answers were clear; in person one-on-one 401(k) enrollment support and ongoing financial education. And then we found out something even more significant—they were not going to ask for it. Too afraid of backlash, speaking up when they shouldn’t, or rocking the boat, employees didn’t want to bring up concerns about their 401(k) to their employer.
Employers believe there is a better 401(k) plan out there.
Employers had many reasons for establishing a 401(k); from helping employees prepare for retirement, to providing competitive benefits for retention, to being able to save for their own retirement. We found that many employers initially set up a 401(k) plan with a service provider based on a single interview. Which makes the next response not that surprising; they all said they believe there is a better 401(k) plan out there. Then—and this is important—because they hadn’t heard any complaints from their employees, they didn’t see a need to re-evaluate their 401(k).
NO NEWS ISN'T GOOD NEWS AND EMPLOYEES ARE LOOKING FOR HELP
A key finding from our research is there's a vicious cycle at play here; employees are not communicating their 401(k) plan concerns and employers are assuming that since no one is complaining every thing is fine.
Find out what a better 401(k) plan service provider is like and ask us for a Plan Review today. It’s our mission to help small and mid-sized businesses revitalize their 401(k) plan with customized service that truly helps employees get retirement ready.
*Cited from Small Business and Entrepreneurship Council Facts and Data as of 2012 U.S. Census Bureau Data.
**Transamerica Center for Retirement Studies Survey, 2015
*** IRS "Choosing a Retirement Solutions for Your Small Business", October 2015.