A little over half of small businesses offer insurance or retirement benefits to their employees, according to research released Monday by LIMRA. The organization found 52% of small business owners offer some combination of insurance or retirement benefits.
“The vast majority offer insurance only or both,” Kim Landry, a research analyst for LIMRA, told AdvisorOne on Tuesday. She said 23% of respondents offer both insurance and retirement benefits and 47% offer insurance only. Just 4% of small-business owners offer retirement benefits only.
The organization studied businesses with fewer than 100 employees. Data from the U.S. Census Bureau shows that 98% of U.S. businesses, or 35% of the work force, have fewer than 100 employees, according to LIMRA.
Landry said 401(k)s are by far the most popular retirement product, with 20% of respondents saying they offer them. Landry noted that 401(k)s become more common as the size of the small business increases. SEP and SIMPLE IRAs, which are specifically designed for small companies, she said, are offered by 8% of small business owners.
Among insurance benefits, medical and prescription drug coverage are overwhelmingly the most common. One-quarter of respondents offer dental and life insurance benefits.