Advisors Improve 401(k) Plan Satisfaction of Small Business Owners
Survey shows small business owners that work with a financial advisor are more satisfied with their 401(k) Plan.
A recently published survey of employers regarding their 401(k) Plan offered several insights into the impact that 401(k) Plans have for employers that have between 25 and 250 employees. In summary:
- Plan Sponsors that work with a financial advisor (61%) are more satisfied with their firm’s 401(k) Plan than those that do not (40%)
- 46% of small business don’t have a retirement plan
- 58% of business owners that don’t currently offer a plan would like to establish one in the next three years
- Nearly 20% of the respondents were unhappy with the level of fiduciary service they were receiving from their current providers
- Nearly 1/3 of respondents did not even know they were a fiduciary to the Plan
- 90% of firms with a retirement plan report that their plan helps recruit and retain talented employees.
- While the above issues were concerns, nearly 98% of respondents were “somewhat” or “very” satisified with their overall plan.
We here at ETF Model SolutionsTM found the following discovery to be shocking:
“Nearly 1/3 of respondents did not even know they were a fiduciary to the Plan”
Small business owners are considered fiduciaries and must act in the best interests of the participants in the Plan. Obviously, there’s a tremendous opportunity out there for advisors, especially those that act as fiduciaries, to educate the small business owner clients. There are firms, including advisory firms and TPAs that can help reduce fiduciary liability for small business owners.
The survey was conducted by Guardian Life Insurance Company and a link to the entire article, can be found on the ThinkAdvisor website: Small Business 401(k)s Are A Ripe Opportunity for Advisors.
