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

Chicago, IL—A scientific opinion poll released today shows the majority of Illinois entrepreneurs believe most residents are unprepared for retirement, and believe the state should do more to help workers prepare for their golden years. One solution they strongly support is proposed legislation that would make it easier for small businesses to establish basic retirement plans for their employees.

The opinion poll, conducted Nov. 11-12, 2014 by Public Policy Polling on behalf of Small Business Majority, found a vast 80 percent of small business owners believe Illinoisans will not have enough money saved for the future. What's more, nearly two-thirds (64 percent) are concerned their own employees will not have enough money to cover their basic living expenses in retirement. As a possible result of this worry, 63 percent of respondents agree Illinois should do more to help its residents prepare for retirement.

Legislation has been proposed that addresses this issue. The Illinois Secure Choice Retirement Savings bill would give the self-employed and small businesses with up to 25 employees the option to participate in a basic retirement account funded by employee payroll deductions, which would be managed by an investment company contracted by the state. Businesses with 25 or more employees and no workplace retirement plan would be required to offer this plan, but at no cost to the business, and employees can decline to participate. The majority of small businesses in the state support this legislation: 54 percent said they support the bill and one-quarter responded they strongly support it. Another six in 10 support instituting a payroll deduction in the state that would allow their employees to automatically save money at no cost to the business.

Seven in 10 small business owners in the Prairie State have been unable to offer a retirement plan due to a number of barriers, and only a third have spoken with a company that provides retirement services about setting up a plan for employees. Of the reasons why they don̢??‰?t offer a plan to employees, small employers report they don't have the administrative capacity to administer a plan (27 percent), that they are too expensive to set up (14 percent) or that they're concerned about how to choose a plan provider business (10 percent).

"Illinois small business owners know that offering a retirement plan helps them better compete in the job market and boosts morale among their employees," said Jesse Greenberg, Small Business Majority's Illinois-based Midwest Director. "Employers clearly recognize the importance of helping their workers prepare for retirement, but several barriers are preventing them from doing more. The proposed retirement legislation would offer small employers a convenient option for themselves and their employees to save more money so they can enjoy their golden years. In order to prevent further strain on state-financed safety net programs, Illinois should take steps to encourage its residents to save for the future."

When asked about their political identification, poll respondents were majority Republican: 64 percent identified as Republican, 23 percent as Democrat and 13 percent as independent.

For the full report, visit: http://www.smallbusinessmajority.org/small-business-research/retirement/IL/