Michigan Small Business Supports Public-Private Retirement Savings Options

Retirement


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Lansing, Michigan–Majority of Michigan small business owners and decision makers say more needs to be done to help Michigan workers save for retirement, according to a report . New AARP Small Business Survey. Most of the survey respondents agreed that the state legislature should support legislation that would make it easier for companies to make retirement savings options available at work for their employees and themselves.

Most small business owners surveyed by AARP (79%) agree that being able to offer a portable retirement savings program will help them attract and retain top talent and stay competitive. . But nearly 6 in 10 don’t offer their employees a way to save for retirement.

“My business is young and growing but can have high turnover.So anything that invites people to stay longer while allowing them to save for the future is something I stand by. That’s right,” said Kari Vanderhuell, who owns Red Fork, a restaurant and coffee shop in northeastern Michigan. Near Harrisville, Arcona County. “I tend to hire younger people and wish I could offer them something that would help them save for retirement, but I can’t financially do that. There will be

More than 40% of Michigan’s private sector workforce aged 18-64 (workers of all levels of income, education and background) do not have access to retirement savings plans at work. The smaller the employer, the less likely it is that employees will have access to retirement plans.

An AARP survey found that 62% of small businesses are concerned that their employees don’t have enough money to cover medical and living expenses in retirement. 1 in 4 (25%) said they were very concerned. Most (82%) of small business owners who participated in the survey also said that as taxpayers, Michigan residents who do not have enough money saved for retirement will be dependent on public assistance programs. said he was concerned.

“Small businesses are aware there is a retirement savings crisis in Michigan and want lawmakers to take action,” said AARP Michigan Director Paula Cunningham. “Approximately 1.6 million workers in Michigan do not have access to a savings plan at work. It will save taxpayers money.”

Similar retirement savings partnerships operate in Oregon, California, Illinois, Delaware and Hawaii with more than $839 million in assets under management. Missouri and Minnesota were the 17th and 18th states to pass retirement savings bills, and several other states, including Ohio, are working on similar measures. Many of the participants were first-time savers, with an average income of $29,000 for Oregon savers who have been in the program since 2017.

Small business owners across the state have told AARP they support the creation of a personally managed, plug-and-play retirement savings option to help employees save for the future through their paychecks. In other states, elected officials are developing retirement savings options for small businesses that don’t yet offer plans.

The majority (72%) of business owners surveyed believe that traditional retirement savings plans are too costly, and nearly half (46%) believe they are too complex to run a business. increase.

However, when asked how likely they would be to participate in the retirement savings options listed in the survey, more than two-thirds of Michigan small business owners said they would take advantage of them if they were available to their employees. answered that they are likely to provide Nearly three-quarters said they would support such an option, which would operate similarly to the state university’s 529 savings plan.

Similar retirement savings partnerships operate in Oregon, California, Illinois, Delaware and Hawaii with more than $839 million in assets under management. Missouri and Minnesota were the 17th and 18th states to pass retirement savings bills, and several other states, including Ohio, are working on similar measures. Many of the participants were first-time savers, with an average income of $29,000 for Oregon savers who have been in the program since 2017.

of 2023 Michigan Small Business Owner Survey This was a telephone survey of 548 small business owners or decision makers about employee benefits for companies with 1 to 150 additional employees. Interviews were conducted between him on April 21, 2023 and he on May 16, 2023. The margin of error for this sample is ± 4.2 percent. The sample, including owner name and company, was taken from the Data Axel business list and used the Michigan Census Bureau’s 2023 Economic Census (based on industry, number of employees, and county) to add 1 to 10 additional employees. Weighted as 150 people.

Media Contact: Cathleen Simlar csimlar@aarp.org.





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