Small Businesses Say Washingtonians Unprepared for Retirement, Believe State Needs to do More to Help

Seattle, WA̢??‰۝A scientific opinion poll released today shows the majority of Washington entrepreneurs believe most Washingtonians are unprepared for retirement, and believe the state should do more to help workers prepare for their golden years. One solution they strongly support is proposed legislation that would make it easier for small businesses to establish basic retirement plans for their employees.

The opinion poll, conducted Dec. 18-19, 2013 by Public Policy Polling on behalf of Small Business Majority, found a staggering 85 percent of small business owners believe Washingtonians will not have enough money saved for the future. What̢??‰?s more, nearly two-thirds are concerned their own employees will not have enough money to cover their basic living expenses when retired, with more than a third responding they are very concerned. As a possible result of this worry, 73 percent of respondents agree Washington should do more to help its residents prepare for retirement.

Legislation is currently being considered that addresses the issue of retirement by making it easier for small businesses to establish a basic retirement savings option. Under this legislation, the self-employed and small businesses with up to 100 employees will have the option of creating a simple retirement account managed by the state for themselves and their employees. Small employers showed strong support for this legislation: nearly two-thirds said they support the bill and one-quarter responded they strongly support it.

̢???Washington small business owners know that offering a retirement plan helps them better compete in the job market and boosts morale among their employees,̢???? said Terry Gardiner, Small Business Majority̢??‰?s Washington-based VP of Policy & Strategy. ̢???Employers clearly recognize the importance of helping their workers prepare for retirement, but several barriers are preventing them from doing more. The proposed retirement legislation would offer small employers a convenient option for themselves and their employees to save more money so they can enjoy their golden years. In order to prevent further strain on state-financed safety net programs, Washington should take steps to encourage its residents to save for the future.̢????

The vast majority of employers (78 percent) in the Evergreen State have been unable to offer a retirement plan due to a number of barriers, including that retirement plans are too expensive or they simply don̢??‰?t have the HR capacity to manage one. However, they realize the importance of offering employee retirement plans. Of those who currently offer a plan to their employees, the majority believes it helps them attract and retain talent and that it has a positive impact on employee attitude and performance. And more than a third say they offer because it̢??‰?s the right thing to do.

It̢??‰?s important to note that Washington business owners have not made these decisions along party lines. The political breakdown of the poll shows that it was a Republican plurality, with 42 percent identifying as Republican, 22 percent as Democrat and 36 percent as independent.

For the full report, visit: http://www.smallbusinessmajority.org/small-business-research/retirement