Retirement is oftentimes a distant dream or figment of the imagination. The idea of starting a new hobby, buying that boat you always wanted, traveling or simply lounging around, sounds very idyllic after many years and years of hard and dedicated work. Sometimes, people launch their dreams with their retirement money earned from work.
Though retirement may be the thing most Americans dream of, the country is far behind when it comes to saving for retirement. According to Yahoo! Finance, over 64% of Americans have not saved for retirement, and 48% do not care about saving for retirement. This means that for the majority of the country, retiring without financial worries is out of the question. The majority of us will have to continue to work hard for a living or we will have to live off of savings or emergency fund accounts.
Most Americans are not prepared for retirement, the quickest way to remedy the issue is through a work-sponsored retirement benefit. Why provide a work-sponsored retirement benefit? This is because employees with a 401(k) or similar benefit are 15 times more likely to save for retirement!
As an employee, how do you gain access to this type of benefit? Well, if you are lucky enough to work for a corporate company or a large scale business, chances are, upon hiring, you will be notified that a retirement fund is part of the perks that come with the corporate nine-to-five life. For the rest of Americans, retirement plans can be hard to come by because smaller and less established — but not by any means less important or impactful — employers believe that they cannot afford it.
“This is why 85% of small businesses do not offer 401(k)s as a benefit,” says Daniel Beck, co-founder and CMO of 401GO, a company that makes 401(k) plans easy and affordable. Having built several successful businesses, Beck understands the plight of small business owners and entrepreneurs.
The culture, uniqueness and freedom that typically coincide with working with a small company is often overshadowed by the lack of employee benefits. Small businesses should realize that offering these benefits will also benefit their business as well.
“We find that the majority of small businesses we work with have a genuine concern for their employees and want to help their workforce prepare for retirement. Beyond the concern for the general welfare of their employees, small businesses will attract and retain better talent by offering the same quality benefits typically reserved for much larger companies,” adds Beck.
He notes that one benefit of smaller businesses implementing 401(k) versus a large corporation, is that they are typically more open to modern processes and could adopt an automated 401(k) solution faster.
Beck adds, “There are also many states and municipalities that are in the process of passing legislation (often referred to as secure choice) that requires businesses of all sizes to offer a retirement benefit or go through the process of joining and complying with a state run program. One way or another, it is in the best interest of small businesses to figure out a 401(k) plan or something similar for their employees.”
Small businesses that adopt technology-based solutions and modernize their workforce’s retirement planning will pave the way for other businesses to follow.
How does a small business incorporate a retirement solution? By researching and discovering a 401(k) plan that fits their needs.
“401(k) plans are extremely complex and very rule-based which makes the learning curve for getting a properly designed 401(k) plan a challenge for most busy small business operators,” says Beck.
The most common reasons why small business owners do not implement a 401(k) plan is due to complexity, time consumption and costliness of a 401(k) plans management. 401GO has a solution, by offering clients a mere $9/employee per month plan which includes everything.
“A traditional 401(k) program will involve three, maybe four, service providers all with their own processes, procedures and fees which is not only complex to set up and manage, but it is expensive as well,” says Beck.
“We have consolidated all those services into a single comprehensive solution that saves time and money. The industry average for getting a 401(k) plan up and running is about eight weeks; with our automated tech platform, we can get a plan up and running in under 15 minutes. On average, 401GO is 60% less expensive and can get a plan up and running in as little as eight minutes. A plan through 401GO will offer more benefits, cost less and be far simpler than any state’s default program that may come into fruition in the near future.”
For companies that want to grow and succeed, they must consider offering employees with a 401(k) option. One of the best ways to do this is through a well-structured and easy plan such as the one 401GO offers.
Retirement plans are a part of the American dream, and by providing employees with the option to empower themselves with personal financial planning, small businesses find more purpose and help to make their workforce happier by working toward retirement.
To learn more about 401GO, please visit: https://401go.com/.