Best Reasons to Set Up a Small Business Retirement Plan
As a small business owner, you want the best for your employees. After all, many small businesses operate like families.
Because of this desire to help all of your employees to the best of your ability, you have probably considered starting a retirement plan for your company. If you haven’t considered a retirement plan for your small business, now is the time to do so!
In this article, we will review some of the best reasons to set up a small business retirement plan for your company.
Top 3 Reasons to Start a Small Business Retirement Plan
Your Employees Will Be More Likely to Stick Around.
In the past few years, we’ve witnessed a massive shift in the labor market. Employees are becoming more selective with their employers and are increasingly leaving jobs when they feel that they are underappreciated.
If you are able to offer them a compelling retirement plan that will give them an incentive to stay with your business, they will be much more likely to remain with you for years or even decades.
You’ll Help Your Workers Plan for the Future.
As was mentioned in the introduction, many small businesses treat their employees like family. Therefore, it’s a good idea to help these employees navigate their retirement as best they can. By providing them with a retirement plan and educational materials pertaining to retirement, you’ll enable them to have some security for the future.
There are no guarantees in life, but having some retirement money to tap into years down the road is always beneficial.
You’ll Be able to Compete with Other Businesses in Your Area.
Make no mistake: it’s a tough time for all small businesses, regardless of the industry. Your competitors are making the same calculations you are. They are researching the best ways to compete with other small businesses both in terms of attracting and retaining employees.
If you are able to offer your employees a retirement plan that appeals to them, you will stand out amongst other small businesses in your area. Some business owners believe that employees only care about salary and a few other small ticket items. But it’s clear that many employees are looking for a company that looks to the future. You can show your employees that you are future-focused by starting a great retirement plan today!
What Types of Retirement Plans are Available to Small Businesses?
According to plan provider Ubiquity, there are three main types of retirement plans preferred by small businesses.
The first is the Simplified Employee Plan. This option makes it easy for business owners to manage the plan, as funds are maintained by employer contributions only.
The second is the SIMPLE IRA. This plan is an IRA which can only be used by businesses with fewer than 100 employees. However, this is not a good option for single-member ventures.
Last, but not least, is the 401k plan. This plan can be used by companies with hundreds of employees or by those who have no employees.
Each retirement plan offers unique benefits. It’s important that all business owners take the time to research the different plans and implement the one that best fits their company as soon as possible!
