While most small business owners believe that consumers’ concerns about retirement security limits spending and undermines the economy, only 33% offer a retirement plan, according to a recent phone survey by the American Sustainable Business Council. Of those that do not offer a plan, costs are the major barrier (by a wide margin), followed by liability, compliance and complexity.
But the news is not all bad. Fifty percent of businesses with 20 or more employees offer a retirement plan, and 27% of all businesses that do not offer one would like to. So a low-cost, simple retirement plan with limited liability and regulatory requirements might find a willing and eager audience, according to the ASBC study.
