Nudging Small Business Owners to Adopt Workplace Retirement Plans

The research described in this paper was shown to increase workplace retirement plan adoption with small business owners through the application of a unique combination of two artefacts.

There are currently over 55 million working Americans that do not have access to a workplace retirement plan (CRI, 2018). Small business owners, employing 50 or fewer employees, are a significant catalyst to this problem. 67% of small business owners do not offer their employees a workplace retirement plan (GAO, 2017), and 33 million Americans work for a small business (GAO, 2017).
There is a significant difference in retirement preparedness between workers that have access to a workplace retirement plan and those who do not, as illustrated in Figure 1 (following page).
When workers are not offered a workplace retirement plan, 67% have less than $1,000 saved for retirement. But when they do have access to a plan, that figure goes down to 9%.
The purpose of this research is to discover why small business owners are so much more likely to not offer a workplace retirement plan compared to larger companies and what methods we can employ to increase that adoption rate.

Authors: Peter W. Kirtland

Link: https://doi.org/10.28945/4574

Cite as: Kirtland, P. (2020). Nudging small business owners to adopt workplace retirement plans. Muma Business Review 4(15). 139-141. https://doi.org/10.28945/4574

Leave a Reply

Your email address will not be published. Required fields are marked *