Fifty percent of business owners plan to increase their 401(k) matches, with 55% of this group saying it is because of rising revenue, Nationwide found in an online survey of 1,069 business owners with up to 299 employees.
percent of business owners who currently do not offer a retirement plan say
they expect revenue to increase in the next year or two, and this
will prompt them to offer a retirement plan.
Among Millennial business owners, 85% plan to increase their 401(k) matches, compared to 31% of Baby Boomer business owners and 49% of Gen X business owners. Forty-seven percent of all business owners believe they should offer a retirement plan, but this rises to 70% of Millennial business owners.
Only 39% of business owners think their employees are on track to retire, and 72% think the U.S. is facing a retirement readiness crisis. Thirty-two percent of business owners recently increased their contributions in order to attract and retain talent.
“With tight labor markets as a result of the continued economic expansion, it’s more important than ever for employers to offer benefits like retirement plans that can differentiate their business as a destination for top talent and a workplace where employees want to stay and grow,” says John Carter, president of retirement plans at Nationwide. “America’s workers rely on employer-sponsored retirement plans as their primary way to save for retirement.”