Employers want to offer great retirement benefits, no matter how big or how small the business. After all, it seems like a “win-win” situation. Employees get good retirement savings opportunities, and they may get matching contributions and other tax-advantaged compensation. Employers get happier, more loyal workers, and are better able to compete for talent in a competitive labor marketplace. Especially in smaller businesses, the benefit interests of employers and employees are closely linked—owners and their families typically rely on the same tax-qualified plans as their workers for their own retirement. A 2012 MetLife study showed that retirement benefits are the third most important factor driving employee loyalty in small businesses, behind
salary and health & medical benefits. Why is it that not all employers offer a 401(k) plan? Why are larger businesses three times more likely to offer retirement benefits than small businesses with fewer than ten employees?