The Brian Mudd Show

The Brian Mudd Show

There are two sides to stories and one side to facts. That's Brian's mantra and what drives him to get beyond the headlines.Full Bio

 

Progress but no cigar - small business retirement plans:

Progress but no cigar - small business retirement plans:

Bottom Line: There's improved news for employee access to retirement plans in this year's update on retirement accounts from the Pew Charitable Trusts. The findings:

Percentage of companies offering retirement accounts by employee count at the end of 2016:

500+: 74%

50-99: 52%

>10: 22%

That gives you a look at the three most significant lines of demarcation with regard to retirement plans being offered. It's understandable that the smaller the company the less likely they are to offer a retirement plan but that's a headwind from an employee retention standpoint. The most commonly offered retirement plan is a 401k plan. For employees who participate in an employer sponsored plan - their turnover rate drops (commonly by 20%+). Given that employee turnover represents a huge cost for employers (the average cost is 20% of the gross compensation of that position) - it's generally a good value proposition for employees to offer these plans and often is critical for attracting and retaining key talent.


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