According to a recent survey, more small businesses now sponsor 401(k)
plans now than five years ago.
The report comes from a nationwide survey of
small businesses – companies with fewer than 50 employees - conducted by
ShareBuilder 401k. The results show that 24 percent of small businesses now
offer a 401(k) plan, up from only 10 percent in 2008.
In an encouraging sign, of the 28 percent of businesses
that stopped making or lowered matching contributions over the past five years,
56 percent have reinstated the contributions. And 89 percent of small business
owners with a 401(k) plan in place said it is an important tool in attracting
and retaining quality employees. Fully 50 percent of business owners with a
401(k) plan feel that it is their responsibility as an owner to offer a plan.
The survey also found that 58 percent of
business owners said their own retirement savings are higher than five years
ago. And 65 percent feel that their retirement saving rate is enough to prepare
for retirement versus 44 percent expressing this sentiment five years ago.
The two biggest reasons more small businesses do not offer a 401(k)
plan is that 48 percent feel they do "not enough employees to make it worthwhile"
and 23 percent said they "can't afford to offer a company match".
The survey used responses from 500 small business owners and
included similar questions in order to create the comparative data.