COLUMBUS, Ohio, Nov. 20, 2019 /PRNewswire/ — Having access to a workplace retirement plan is a top predictor of retirement preparedness. Unfortunately, many small businesses find it difficult to offer these benefits to employees for a number of reasons, including cost, administrative difficulties and lack of expected participation among employees. With almost half of the American workforce employed by small businesses, this compromises a large portion of our population’s financial future.
Today, there is pending federal legislation that would make it easier for small businesses to offer workplace retirement plans such as 401(k)s and IRAs. The SECURE Act, short for “Setting Every Community Up for Retirement Enhancement Act,” is one of the largest proposed overhauls of the U.S. retirement system in decades.
Emphasizing the importance of this legislation, a recent Nationwide business owner survey1 uncovered that 59 percent of business owners think the SECURE Act would have a positive impact on their ability to offer a 401(k) plan. Among business owners who are familiar with the SECURE Act, 84 percent believe the legislation should make it easier for small business owners to offer a 401(k).
Beyond helping business owners and employees financially prepare for retirement, the ability to offer a 401(k) has significant business benefits – nearly nine in 10 business owners agree that it provides both their business and employees tax advantages (88 percent),…