You’ve probably seen the TV ads with the big red “Easy” button. Here’s a hint: it’s the ad for an office supply chain with a name that rhymes with maples. If only you could take that red button and put it in front of all the small business owners who don’t have retirement plans set-up for their companies. “Just hit the button,” you would say. And shazam! They’d have their retirement plans. Okay, establishing a retirement plan isn’t THAT easy, but it’s close. Education is crucial to showing small business owners how truly beneficial, and of course, easy, an employee retirement plan is. They’ll realize it really is as easy as 1, 2, 3:
1. It attracts and keeps employees. By offering retirement benefits, business owners create an enticing and powerful incentive. If a company offers a 401(k) as part of a benefits package, and a different company the potential employee may be interested in doesn’t, the odds of gaining/retaining that employee shifts in the favor of the company who offers the 401(k). Take it one step further by offering a company match, and the scales could be tipped even further! Offering a retirement savings plan also shows that business owners really care about their employees. And that speaks volumes. Word will get around, and the owner and the company will be better off for it.
2. It’s affordable. Many small business owners think retirement savings is cost-prohibitive, or VERY expensive at the very least, to offer a 401(k). On the contrary, a 401(k) plan is one of the lowest cost, highest benefits an employer can offer. There are also multiple tax benefits a company can receive by offering a 401(k), including a tax credit that offsets the start-up costs and a federal tax deduction of any contributions it makes to plan participant accounts. Plus, business owners can also participate. They have a future to be prepared for, too, so establishing a 401(k) for the company means the ability to establish one for themselves as well.
3. Minimal time and attention is required. After all, small business owners have you! Business owners want to concentrate on their businesses, not manage a retirement savings plan. That’s where you come in. Education and account setup is intuitive and quick. Even more, if you choose a solution like PAi’s CoPilot, neither you or your client need to worry about fiduciary responsibilities surrounding investments. PAi makes it easy for you to make it easy for your client!
The hardest part of a retirement savings plan for small business owners is understanding how easy a retirement savings plan can be. Pull out that retirement savings “Easy” button and give it a push!