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Small Businesses Believe Washington Needs to do More to Help Workers Prepare for Retirement, Support Legislation Doing So

Publisher: 
Small Business Majority
Date: 
Wednesday, 22 January, 2014

Though the U.S. is slowly recovering from the effects of the Great Recession, Washington small business owners and their employees are facing another financial crisis: retirement security. A survey by the American Association of Retired Persons (AARP) found a quarter of residents between the ages of 45-64 in the Evergreen State have less than $25,000 in savings, and additional research found nearly three in five middle class workers in the state can expect to outlive their retirement savings.  Washington small business owners and their workers are no exception. A scientific opinion poll conducted for Small Business Majority by Public Policy Polling shows the majority of Washington entrepreneurs believe most Washingtonians are unprepared for retirement, and that the state should do more to help workers prepare for their golden years.

Main Findings

Small employers believe most Washingtonians will not have enough saved for retirement and are concerned their employees are also unprepared for retirement: A vast 85 percent of small business owners believe Washington residents will not have enough retirement savings, with more than two-thirds responding they are not confident at all. What’s more, 65 percent are also concerned their own employees will not have enough money saved to cover their basic living expenses during retirement. However, 74% of owners say they do have a retirement plan in place for themselves.

Small businesses believe Washingtonians will not have enough saved for retirement

How confident are you that most Washingtonians will have enough saved for retirement: very confident, somewhat confident, not very confident, or not confident at all?

Small business owners believe Washington should do more to encourage saving for retirement: 73% of small businesses agree Washington should do more to help small businesses prepare for retirement, with more than half (51%) who strongly agree.

Small employers believe Washington should do more to help prepare residents for retirement

Do you think Washington state should do a lot more, a little more, or nothing more to encourage saving for retirement?

Small business owners support state legislation that would make it easier for self- employed individuals and small businesses to establish a basic retirement savings option: 63% of small business owners support proposed state legislation that would establish a basic, voluntary retirement savings account for the self-employed and small businesses with up to 100 employees that would be managed by the state. A quarter of entrepreneurs responded they strongly support this kind of legislation.

Entrepreneurs support proposed state legislation that would make it easier for small businesses to establish a basic retirement savings option

Currently there is Washington state legislation being considered that addresses the issue of retirement by making it easier for self-employed individuals and small businesses to establish a basic retirement savings option. Under this legislation, the self-employed and businesses with up to 100 employees will have the option of creating a simple retirement account managed by the state for themselves or their employees. It is up to each person to decide if they want to contribute, and the account follows workers if they switch employers. Would you strongly support, somewhat support, somewhat oppose, or strongly oppose this legislation?

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State(s): 
WA