Most small business owners and professionals who have defined benefit pension plans say the plans are helping them minimize taxes and put more money away for retirement.
Dedicated Defined Benefit Services L.L.C., San Francisco, a firm that helps administer small, Section 412(i) defined benefit plans, has published this finding in a summary of results from a survey that drew responses from 228 plan sponsors.
About 96% of the participants said their defined benefit plan is a top strategy for cutting taxes and investing more money in their retirement fund, the firm says.
Other survey findings:
- 51% of the participants said the recession has not affected their plans for retirement.
- 35% said the recession will cause them to keep working longer.
- 19% plan to retire earlier than they had originally anticipated due to the success of their defined benefit plans.
- 63% rely on financial advisors as their primary source of information about defined benefit plans; another 20% rely on accountants or tax attorneys.
- 40% expect their companies’ revenue to stay the same in 2011; 32% expect revenue to increase, and 17% expect revenue to decrease.
- Warren S. Hersch