A new small business survey finds that 75% of small business owners agree that so many Americans are financially unprepared for retirement that it has reached crisis levels.
Nationwide Financial, Columbus, Ohio, published this finding in a summary of results from a new study. Conducted by Harris Interactive, New York, the survey polled 501 U.S. small business owners in the U.S. with 1-100 employees between August 9 and September 23, 2011.
The report finds that only one in five (19%) of small businesses offer their employees a 401(k) or other employee self-funded retirement plan.
The report adds that just 11% of small business owners say they are likely to add an employee sponsored 401(k) plan within the next two years. That’s because 69% say their business is too small. And more than half say that a 401(k) is too expensive.
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However, 37% of small business owners with more than six employees say they are under pressure from employees to offer a retirement plan. Four in five (78%) of these owners surveyed say having a retirement plan is effective in helping to attract qualified employees.