As it turns out, small businesses like the idea of being mandated into offering a retirement plan. They just wish it was being done differently.
As it turns out, these business owners fully support the idea of Auto-IRA plans. They just have little faith in the government properly operating such a plan:
86% of SMB owners somewhat support or strongly support Automatic IRA Plans.
82% of SMB owners prefer a mutual fund or insurance company to administer their plan.
55% of DC Plan Sponsors are likely to stop offering a DC Plan in favor of a State Plan due to cost savings.
As these numbers suggest, these employers want to offer their employees a plan, but they want to do it on their terms. That begs the question: Is the retirement industry ready to provide what these companies are looking for?
Data from The Pew Charitable Issue Brief, Small Business Views on Retirement Savings Plans, January 11, 2017.