Fifty percent of business owners plan to increase their 401(k) matches, with 55% of this group saying it is because of rising revenue, Nationwide found in an online survey of 1,069 business owners with up to 299 employees.
Thirty-six percent of business owners who currently do not offer a retirement plan say they expect revenue to increase in the next year or two, and this will prompt them to offer a retirement plan.
Among Millennial business owners, 85% plan to increase their 401(k) matches, compared to 31% of Baby Boomer business owners and 49% of Gen X business owners. Forty-seven percent of all business owners believe they should offer a retirement plan, but this rises to 70% of Millennial business owners.
Only 39% of business owners think their employees are on track to retire, and 72% think the U.S. is facing a retirement readiness crisis. Thirty-two percent of business owners recently increased their contributions in order to attract and retain talent.
“With tight labor markets as a result of the continued economic expansion, it’s more important than ever for employers to offer benefits like retirement plans that can differentiate their business as a destination for top talent and a workplace where employees want to stay and grow,” says John Carter, president of retirement plans at Nationwide. “America’s workers rely on employer-sponsored retirement plans as their primary way to save for retirement.”