Data & Research April 17, 2009

Small-Business Employers Still Onboard with 401(k)s

Despite generally acknowledging the importance of retirement plans, almost 40% of responding small-business employers do not offer one, according to a survey by SunTrust Bank.
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They cited the following as potential roadblocks, according to a release of the survey results:

  • affordability (90%)
  • ease of use once the program is implemented (89%)
  • ease of setting up a program (87%)
  • fee transparency (87%)
  • quality and range of investment alternatives available (87%).
401(k) Advantages

According to the announcement, the study also found:

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  • Small business owners recognize the importance and desirability of 401(k) retirement plans in particular, as they overwhelmingly believe that having a 401(k) allows employees to better manage their retirement plans (86%).
  • Eight in 10 said having a 401(k) plan to participate in for their own retirement savings would give them greater peace of mind. Almost nine in 10 owners of small businesses have a personal retirement plan, with 401(k) being the most popular of the plans.
  • The current economy is posing new challenges to small businesses’ personal and company retirement planning: 81% of owners agree that the current economic climate has changed the way they think about their own retirement, with 41% of them citing that it has made planning for retirement more important.

“The survey reinforced to us that in this economy, retirement plans are essential to the health of businesses, families, and communities,” said Brenda Seliga, senior vice president and head of Employee Benefit Solutions at SunTrust, in the news release. “While we certainly understand the apprehension that exists as part of the current economic climate, we find it unfortunate that so many small businesses feel unable to offer retirement plans that can help their employees build solid futures.”

The online survey, conducted independently for SunTrust in February, asked 1,000 U.S. small business owners to identify the biggest challenges they face regarding retirement plans for employees and for themselves.

Eighty-five percent of business owners believe that a retirement plan is an important benefit to their employees, just behind health-care coverage. A majority of small business owners (61%) agree that it is an employer’s responsibility to offer retirement benefits, and 75% say it helps in their efforts to attract and retain high-quality employees.

Products April 17, 2009

Russell Expands Number of Benchmarks Available Online

Russell Investments has expanded the availability of real-time index data on russell.com to include, for the first time, eight global benchmarks.
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The live data feed allows investors to keep close watch on eight global market segments: large cap, small cap, ex-U.S. large cap, ex-U.S. small cap, as well as the value and growth style indexes reflecting the ex-U.S. small-cap and large-cap segments, according to a Russell press release. Total returns charts for these indexes are available here, and they offer one-week, one-month and one-year pictures of each segment, along with the day’s and year-to-date’s high and low points.

Real-time data also is available for seven leading U.S. benchmarks: The broad-market Russell 3000 Index, large-cap Russell 1000 Index, Russell 1000 Growth Index, Russell 1000 Value Index, small-cap Russell 2000 Index, Russell 2000 Growth Index, and Russell 2000 Value Index.

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The live data feed eventually will include additional global indexes, the announcement said.

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