A recent survey of the pension plans offered by small businesses, Unicom found that only one in three businesses offers its employees a pension arrangement. Of the respondents 38% made no arrangements for pension for themselves or for their employees, while 45% had pension plans only for themselves.
A dismal 15% reported that they had pension plans both for themselves and for their employees. In a country where a large percentage of workers, close to 40% work in small businesses, this is an alarming fact.
The survey also said that only 17% of small business employees could depend on a company pension plan, while the rest depended on the basic government pension or private schemes.
This is however not a new trend and in fact a 2003 Small Employer Retirement Survey reported that a majority of SMBs have no pension plans to offer their employees and the main reasons for this were low income or turnover, costs involved, short term employees, and administrative hassles.
However if small business, like home-, micro-, lifestyle-, mobile-, SME-, SMB-, SOHO-businesses, are to grow well and ensure that their employees also do so they will need to start focusing on helping them gain a secure financial future.