Allow me to indulge myself for this is a pet peeve of mine. Inc.com offers up this article – Majority of Small-Business Owners Do Not Offer Retirement Benefits.
Only 14 percent of the nation’s small-business owners offer a 401(k) plan to their employees, and 63 percent do not offer any retirement benefits at all, according to a new survey.
I’m not surprised by this number. I’ve worked for both small and relatively large companies and there is a distinct difference between the benefits. Obviously the larger companies have the capital to offer more comprehensive plans. Here is the pull quote that struck a nerve (emphasis mine):
“Small businesses employ half of all private-sector employees in America and serve as our economy’s growth engine,” ShareBuilder CEO Jeff Seely said in a statement. “Given the rising cost of health care, uncertainty about Social Security, and longer life expectancy, it’s imperative that America’s small business owners understand their crucial role in addressing the looming retirement crisis.”
At what point does it become the responsibility of the worker to plan accordingly for their retirement? Ideally, all companies would offer some pre-tax retirement plan. But benefits are not a requirement by law and they never should be. The market will drive companies to compete for talent and that battle is only going to intensify over the next few decades. The demand will drive the need for companies to offer more benefits. In the meantime, workers need to plan for their own retirement needs.