December 13, 2011
--- African-American small-business owners are more than twice as likely as other small-business owners to provide more access to 401(k)-type plans within the next 12-24 months. ---
A recent small business survey by Nationwide Financial finds that 78% of African-American small-business owners say the number of workers financially unprepared for retirement is at “crisis levels.”
The Harris Poll of 501 small-business owners – including 200 African-American small-business owners – found that one in four (26%) African-American owners say they are going to enhance employee benefits over the next 12-24 months, compared with just 10% of other small-business owners.
“It’s clear that African-American small-business owners are deeply concerned about the lack of preparation for retirement in our country,” said Eric Stevenson, vice president of sales for Nationwide Retirement Solutions. “Despite the alarming level of concern, it’s encouraging to see they are trying to do something about it by investing in their employees.”
The survey found that in the next 12 – 24 months:
- 24% of African-American owners say they will add a 401(k) plan or some other employee self-funded plan, compared to 11% of all small-business owners
- 28% are likely to add health insurance (11% others)
- 19% are likely to add life insurance (6% others)
- 16% are likely to add a company-funded defined benefit pension plan (5% others)
- 14% are likely to add disability insurance (6% others)