The Pew Charitable Trusts surveyed 500 Pennsylvania small-business owners and found that 70% are concerned about their employees having enough money to retire.
A press release shared that many of these business owners would support a state-run retirement savings program to help employees who don’t currently have plans through their jobs.
67% of businesses that don’t offer a retirement savings plan for their employees say managing a plan would be too complex. Although they want to offer a plan to their workers, the costs and effort of it all are too difficult and time-consuming.
John Scott, the director of Pew’s retirement saving project, explains that it’s challenging for workers to pay everyday bills while worrying about building a secure retirement fund.
For these reasons, the Treasury and The Pew Charitable Trusts are pushing for the implementation of the Keystone Saves program, which would help businesses stay competitive and help workers build savings with no extra cost to employers.
Keystone Saves would be a commonsense program and would operate much like the PA 529 College and Career Savings Program.
Of the businesses surveyed, 79% agree state lawmakers should be providing assistance to Pennsylvanians saving for retirement. 75% support a savings program that would automatically enroll employees into a payroll deduction program, with of course the chance to opt out at any time.
The effects of inadequate retirement savings don’t just affect workers – it also leads to reduced tax revenue, decreased household spending, and a greater burden on a shrinking tax base. This impact would equal $1 billion dollars a year over the next two decades.
The results of the survey are clear – small businesses support a statewide savings program in hopes that it will level the playing field and help attract and keep quality employees.
