Across the board, employees may have access to retirement plans, but that’s not the case for small businesses. A new small business survey by Nationwide Financial finds that 75% of small businesses agree that so many Americans are financially unprepared for retirement that it has reached crisis levels. However, only one in five of these businesses offer their employees a 401(k) or other employee self-funded retirement plan.
So few small businesses sponsor 401(k) plans for their employees because they need to reach a point of business maturity or critical mass to absorb the cost and administration of the plan.
