Small business owners are the backbone of the U.S. economy, and yet, many of them do not offer retirement plans to employees.

In a recent survey by Capital Group, 65 percent of small business owners aren’t offering retirement plans to employees. With the SECURE 2.0 Act moving toward having small businesses offer retirement – and employees taking more of an active role in saving for retirement – what are some things holding small business owners back from offering this benefit?

Here are some possible roadblocks.

  1. Small business owners don’t think their company is big enough or stable enough
  2. They do not possess the administrative support or resources
  3. A lack of knowledge on how to start the process

Small business owners know that if they want to grow their business, they need to invest in attracting and retaining top talent. And the market is competitive, with larger companies offering retirement plans to employees. With the cost of living on the rise, employees are feeling the pinch – and offering a benefit such as retirement savings options can be a big difference.

Starting the process of offering retirement savings plans to employees as a small business owner doesn’t have to be difficult or daunting. It can, instead, become a solid investment strategy. And there are options for businesses of all sizes, so enlisting the help of a financial professional might make sense so you can get a solid solution.

And there are new incentives under SECURE 2.0 that make it more attractive, including tax credits – so talking to a third-party administrator about potions can help get small business owners on the path.

Do you still have questions about retirement planning options?

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If you have other questions about retirement plan loans, email us or call 937.308.0758.