More than half of survey respondents say they are now saving less money both for personal reasons (56%) and for retirement (53%) compared to a year ago, according to a press release of the results. Eleven percent also report reducing or eliminating matches for their employees, and 16% have taken premature withdrawals or borrowed from their retirement accounts.
The report also found that nearly six out of 10 small business owners feel there are not enough incentives in place to help them start a 401(k), the release said. The number of small business owners with some sort of retirement plan dropped from 35% in 2007 to 26% in 2008. Of those operating without a retirement plan, 45% say they are now less likely to start a 401(k) plan compared to a year ago.
Other survey findings included:
- 63% of small business employers say are either very or extremely concerned about the future of the economy;
- 57% see developing new business as their number one challenge through the remainder of the year, and “access to cash” ranked numbertwo at 18%;
- 40% see the current financial state of their business as worse than a year ago.
Data came from the 2008 Small Business Annual Retirement Trends (SBART) report—an annual survey commissioned by ING DIRECT’s ShareBuilder 401k, conducted online within the U.S. by Harris Interactive from July 29 through August 25. The survey included 512 small business employers (owners, partners CEOs, chairmen, and presidents with 1 to 50 employees).