Many small businesses intend to reduce 401(k) plan matching contributions but continue to keep the plans in place.
Nationwide Financial Services Inc., a unit of Nationwide Mutual Insurance Company, Columbus, Ohio, has published that finding in a summary of results from a recent telephone interview of 401 retirement benefits decision makers at U.S. retirement plan sponsors with 5 to 250 employees.
About 51% of the survey participants at small businesses said their companies may have to reduce or suspend the company match, but about 75% said their companies will continue to offer the plans, according to Nationwide.
The researchers also found that only 12% of the participants identified plan investment and administrative fees as their top retirement plan concern. Another 29% identified fiduciary and legal responsibilities as the top concern, and even more — 31% — identified providing employees with investment education as the top concern.