Employees at Small Businesses Need a Retirement Plan

Thirty-five percent say their benefits, outside of medical insurance, do not meet their needs.

Employees at small businesses are more inclined to be dissatisfied with their benefits than workers at companies of all sizes, Lincoln Financial found in a survey.

Thirty-five percent of employees at small businesses are dissatisfied with their benefits, outside of medical insurance, compared to 20% of workers at companies of all sizes.

Eighty-one percent of small business employees expect to be offered a retirement savings plan, but the reality is that only 58% of small companies have one. This disconnect is most striking for Millennials and members of Generation X, who believe their employer-sponsored retirement plan will be their biggest source of income in retirement. Given the uncertainty of the future of Social Security and ever-increasing longevity, the need for a retirement plan becomes even more critical.

“When potential employees are looking at companies, they clearly want a quality retirement plan,” says Tim Seifert, vice president and national sales manager for small market retirement plan services at Lincoln Financial Distributors. “Offering a comprehensive plan doesn’t have to be complicated. With just a few conversations and some simple decisions, a small business owner can set up a new plan or enhance the one they are already offering.”