Retired preparedness has been a buzzword in the American psyche for the last few years with the pitch increasing in the post-Great Recession environment. As droves of baby boomers approach retirement age, many with nest eggs ravaged by the financial crisis, there has been a concerted effort, both public and private, to ensure that Americans are adequately saving for their retirement.
It is no surprise then that a recent Transamerica Center for Retirement Studies (TCRS) report found that 88 percent of small company workers value 401(k) plans such a SIMPLE IRAs or simplified employee pensions plans (SEPs) as a crucial benefit. What could be deemed surprising is that only 58 percent are offered such plans by their employers.
The report, part of the 14 annual Transamerica Retirement Survey, examines the retirement planning environment for employers and employees in the small business landscape across the country. Retirement preparedness is a critical issue facing the country, especially in the small business realm, so much so that Catherine Collinson, president of TCRS, has been asked to testify to the results of the survey before the U.S. House of Representatives Committee on Small Business.
Because small businesses are a vital driver of the U.S. economy, the retirement benefits that they offer to their employees can both positively and negatively impact the retirement outlook of millions of Americans.
The report defines small companies as those with 10-499 employees and further delineates between micro companies (having 10-99) employees and small nonmicro companies (having 100 to 499) employees.