Small businesses have several advantages going for them. They’re often more nimble and able to make decisions quickly. They can also focus on building meaningful relationships with their customers and staff and can be more personal. And while there may also be disadvantages associated with small businesses, ineligibility for 401k benefits isn’t one of them.
Retirement savings benefits are important to the majority of employees and employers alike. Small businesses don’t have to be excluded from the conversation because they don’t have enough employees or it’s too expensive to provide benefits to so few people. In fact, the minimum number of employees needed to set up a 401k for small business owners is one.
We’ll discuss more about questions and concerns around retirement plans for small businesses in this blog.
Do Most Small Businesses Offer a 401k?
The answer to this question is difficult to answer across the board because it really depends on the business owner themselves and whether they feel that offering a 401k is something that would be beneficial to their employees. Some small business owners may not be aware that they can offer a 401k to their employees or they may feel like it’s not something that would be affordable for their business.
The cost of offering a 401k to employees is not as high as some small business owners may think. In fact, there are a number of ways to set up a 401k for small business owners that can be affordable and easy to administer. Employers can also decide to opt into employee contribution matching, using pre-constructed formulas to determine how much to contribute each month.
Why Your Small Business Should Offer a 401k
Offering a 401k can be an attractive perk for employees, which can help to attract and retain talented workers. Setting up a 401k for small business owners can be cost-effective and simple to carry out.
When searching for a job or career, employees often look for employers who offer 401k plans. Over 60% of workers decide whether to accept a new job or not based on the availability of a retirement plan through that company.
Offering a 401k is also beneficial for small business owners themselves. Employers who offer a retirement plan often see an increase in employee satisfaction and loyalty. Employees who have a 401k are also more likely to stay with their company for a longer period of time.
How to Set Up a 401k For Your Small Business
Setting up an employee retirement plan can seem overwhelming, especially if you aren’t familiar with the process and don’t have any idea where to start. There are a lot of factors to consider, and options to choose from.
Contact Bethany Insurance to get a 401k plan set up for your company so you can focus on your other responsibilities. Give us a call today!
