As pensions go extinct, more Americans turn to individual retirement accounts to prepare for their golden years. One of the most popular is the 401(k), an employer-sponsored plan that allows workers to save a percentage of pre-tax dollars from paychecks.
As of 2014, 401(k) plans were the most popular type of retirement savings, representing about 18 percent of the retirement plan holdings in the U.S.,
according to the ICI
. But while
89 percent of workers at large companies
(500+ employees) have access to employer-sponsored 401(k) plans, only
45 percent of businesses
with <100 employees offer 401(k) plans, and only
of business with <10 employees offer 401(k)s. Overall, that translates into only about half of Americans with access to workplace retirement plans.
Here's how small businesses can benefit from offering 401(k) plans to their employees.