Tomorrow is National 401(k) day and next week we will celebrate Small Business Week. However, as we celebrate the backbone of our economy and local communities (Small Businesses) — there is real uncertainty as business owners face growing challenges attracting and retaining top talent in today’s increasing competitive market. The COVID-19 pandemic has accelerated both cultural and economic shifts that have transformed how employees want to work, and businesses have been forced to adapt on the fly.
Get an Edge On Your Competition
A company’s 401(k) plan is one of the most important benefits for current and potential employees. A 2019 study from the Society for Human Resource Management found that retirement benefits ranked second in importance (after health care) among all the benefits that employers offer. According to SCORE, (mentors to America’s small businesses) 94% of owners claim the 401(k) benefit aided in their recruitment and retention.
Spotlight Back on Employee Benefits & Retirement
The pandemic has once again put the spotlight back on employee benefits and the impending retirement crisis, particularly for small business owners. In Colorado specifically, 82% agree that the nation is facing a retirement crisis. In 2020, 40% of Coloradans did not have access to a retirement plan. And 69% of Colorado workers in the lowest income quintile currently have no access to a retirement program.
The Colorado Secure Savings Plan is Coming!
Local business owners of all sizes face new requirements. Like a number of other states, Colorado recently enacted legislation requiring most small businesses to offer a retirement plan to its employees.
Under the Colorado Secure Savings program, all workers at companies with five or more employees will need access to an Individual Retirement Account funded with automatic salary deductions. Companies that don’t offer a retirement plan such as a 401(k) will have to offer an IRA option administered by the Colorado state treasurer under the direction of the Colorado Secure Savings Program Board.
How Shelton Capital Partners with Small Businesses
The implementation of the Colorado Secure Savings program is a great time for employers to evaluate their retirement plan options.
Learn more about how Shelton Capital Management’s 401(k) concierge-level service and support combined with sophisticated 3(38) investment fiduciary services is helping small businesses navigate new legislation and striving to keep employees happy and engaged. Shelton Capital Management has been serving 401(k) investors for over 35 years and will be your primary point of contact for plan administration, recordkeeping, and custodian requirements.
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