UpFront | Published in June 2017

Retirement Plans Fill Benefit Gaps for Small Businesses

Offering a comprehensive plan doesn’t have to be complicated

By Lee Barney | June 2017
Employees at small businesses are more inclined to be dissatisfied with their benefits than workers at companies of all sizes, Lincoln Financial found in a survey of small businesses and benefits.

Thirty-five percent of small-business employees are dissatisfied with their benefits, outside of medical insurance, compared with 20% of workers at companies of all sizes.

Eighty-one percent of small-business employees expect to be offered a retirement savings plan, but the reality is that only 58% of small companies have one. This disconnect is most striking for Millennials and members of Generation X, who believe their employer-sponsored retirement plan will be their biggest source of income in retirement. Given the uncertainty of the future of Social Security and ever-increasing longevity, the need for a retirement plan becomes even more critical.

“When potential employees are looking at companies, they clearly want a quality retirement plan,” says Tim Seifert, vice president and national sales manager for small-market retirement plan services at Lincoln Financial Distributors. “Offering a comprehensive plan doesn’t have to be complicated.

“With just a few conversations and some simple decisions, a small business owner can set up a new plan or enhance the one [the company is] already offering,” he says.