Other concerns of providing a 401(k) plan included fiduciary responsibilities (26%) and perceived complexity of plan administration (26%), according to a Fidelity Investments press release and product announcement.
Survey respondents recognize the benefits of providing a 401(k) plan to employees, as the top two greatest perceived benefits were that they could save more for their own retirement (66%) and help employees save for their retirement (59%). Almost half (44%) of small businesses without a 401(k) plan said the ability to offer competitive benefits to attract and retain employees would be a major reason to offer a 401(k) plan.
More than a quarter (26%) of small business owners surveyed said they believed there is a lack of 401(k) plans available to suit the small size of their company.
Fidelity has developed a tool enabling small businesses to assess the cost of providing a 401(k) plan to employees. In the release, Fidelity said its Total Plan Cost Calculator is a Web-based tool that looks at plan fees, plan assets, and long-term growth scenarios. The calculator then produces graphs that illustrate total plan costs over several years and can also make comparisons between Fidelity’s offerings and those of other plan providers.
Survey results are based on 1,003 online survey responses from employee benefits decisionmakers at small businesses with between five and 20 employees that do not currently offer a 401(k) plan.
More information can be found at www.fidelity.com .