Helping small businesses, working owners save for retirement by cutting red tape
Americans are concerned about their ability to save for retirement. We hear this every day from our friends and family, and it continues to rank near the top of Americans’ economic concerns in survey after survey. These concerns are real. Many financial advisers say you will need about 70 percent of preretirement income to live comfortably in retirement. That income includes Social Security benefits, investments and other personal savings. We know that the best way to help Americans meet this goal is to expand opportunities for employment-based savings.
Unfortunately, many small businesses are unable to make retirement savings plans available to their workers due to the cost and complexity of programs. It’s hard enough to run a small business without also taking on the burden of becoming a pension and investment expert. As a result, 38 million private-sector employees nationwide do not have access to a workplace 401(k) or other retirement plan. In Idaho alone, according to a recent report from the American Retirement Association, 27,458 employers do not provide a retirement plan, and 100,000 full-time Idaho employees and 99,410 part-timers do not have access to a workplace retirement plan.
We can, and must, improve these numbers. On Aug. 31, 2018, President Trump signed an executive order making it the “policy of the Federal Government to expand access to workplace retirement plans for American workers.” He directed the Department of Labor to cut through red tape, reduce regulations and make it easier for small businesses to offer retirement plans to their employees.